Russia's leading vertically-integrated international steel and mining company Severstal has announced that it has signed a memorandum of understanding (MoU) with India's biggest iron ore miner National Mineral Development Corporation (NMDC) to establish a joint venture (JV) company to build an integrated steel plant in Karnataka with a capacity between two and five million mt per year.
Accordingly, the new JV company proposes to have its captive coking coal mining subsidiary in Russia and an iron ore mining subsidiary in India, which will ensure long-term supply of these critical steelmaking raw materials to the proposed steel plant.
NMDC and Severstal will each have a 50 percent shareholding in the JV and will appoint the senior management team.
"The signing of this MoU is an important strategic development for Severstal as it will establish an integrated steel plant in one of the world's most attractive growth markets," Severstal's CE Alexey Mordashov commented.