Dec. 13: Rio Tinto India is in talks with an Indian company to develop iron ore mines, a senior company official said, underscoring continued foreign interest in Indian mining despite social opposition and regulatory hassles.
“We are very keen to have iron ore operations in India,” Mr Siddharth Jain, general manager-iron ore, Rio Tinto in India, said.
Mr Jain did not identify the Indian company or the location of the mines.
Iron ore is a key raw material in steel making, and demand for steel is expected to grow in double-digits in India, driven by surging construction of buildings and infrastructure and huge investments by global carmakers.
Rio Tinto is also in the final stages of re-negotiating an old agreement with state-owned Orissa Mining Corporation (OMC) with which it has a mining project, with a 51 per cent stake. “In 1995, we had the main agreement for pre-feasibility work with OMC. The subsequent agreement is being re-negotiated and is waiting for government approvals.”
After signing of the final agreement, it would take the joint venture 20 months to begin mining in the Keonjhar district in Orissa, Mr Jain said.