Indian iron ore miner NMDC Limited will form a special purpose vehicle (SPV) with Jharkhand Mineral Development Corporation Limited (JMDC) to set up its planned 6 million mt per year greenfield steel mill in the eastern Indian state of Jharkhand, a Jharkhand government official said on Wednesday, May 11.
The official stated that the SPV will facilitate the government's allocation of iron ore sourcing to the project as JMDC is the mining arm of the state government.
However, the exact equity participation of JMDC and NMDC is yet to be determined, although the estimated investment amount stands at $5.30 billion.
The government official said that, even though NMDC is the country's largest iron ore miner, it suggested the steel mill should have linkages of iron ore from within Jharkhand for logistical cost efficiencies instead of relying on ore from NMDC mines in the neighboring state of Chhattisgarh.