NMDC Ltd (NMDC) and Tata Steel Ltd today signed a Memorandum of Understanding (MoU) for exploring possibilities of a strategic alliance. The MoU was signed by Mr Rana Som, CMD of NMDC, and Mr H M Nerurkar, Managing Director, Tata Steel.

Tata Steel has major plans of expansion within India and is looking at enhancing its iron ore resources and developing technology for using lower grades of iron ore in the country. NMDC plans to look beyond its iron ore business and establish a presence in steel making to add value to its mining operations.

By signing the MoU, both NMDC and Tata Steel have agreed to co-operate with each other to explore possibilities of entering into joint ventures for the purpose of acquisition, exploration and development of mines, extraction and processing of minerals, setting up integrated steel plants and any other business which is of mutual interest to both the organizations.

In the current scenario, where the nation’s steel policy envisages a doubling of steel-making capacity over the next decade, a wonderful opportunity has presented itself for both the companies to work together towards this goal. Tata Steel and NMDC plan to jointly address mining and steel-making opportunities.

The two companies will set up a working group to explore and finalise the areas of co-operation and will submit its report to a Steering Committee. Thereafter, a decision to enter into joint ventures will be taken.

NMDC, a central PSU, is India’s single-largest iron ore producer and involved in mineral exploration and mining. It operates iron ore mines at Bailadila in the State of Chhattisgarh and Donimalai in the State of Karnataka and is also involved in the exploration of a wide range of other minerals. NMDC is presently diversifying into manufacturing of steel and pellets. NMDC has sizable operations in the State of Chhattisgarh and is setting up of an integrated steel plant in that State.

Tata Steel is one of the world’s largest producers of iron and steel. Tata Steel has extensive experience in mining, processing of minerals / metals and in the operations of integrated steel plants. Tata Steel has vast experience of exploration, designing and operation of both underground and open cast mines producing various minerals.