Indian steel colossus Steel Authority of India Limited (SAIL), International Coal Venture Ltd (ICVL) and the governorship of Central Kalimantan, Indonesia, have signed a memorandum of understanding for the development of mineral deposits as well as the setting up of a mineral processing facility, a steel plant and required infrastructure in the province of Central Kalimantan.
ICVL is a consortium of five Indian state-run companies made up of SAIL, Coal India, NMDC, RINL and NTPC, with SAIL chairman C S Verma also the chairman of the grouping.
"The MoU marks the beginning of our mutual intent for long-term engagement with each other in the area of economic cooperation between both the institutions," Verma had said while signing the pact.
India's Economic Times said that SAIL's envisaged steel plant will have a capacity of three million mt per year.
Mutual partnership
According to a SAIL release, the agreement envisages the setting up of a steel plant and mineral processing facility by optimization of large natural resources in the province of Central Kalimantan, such as coking and thermal coal, iron ore and other minerals, for economic development of the province and meeting the requirements of coal of the promoter companies of ICVL through mutual partnership.
While the province will provide ICVL with necessary maps and licenses, ICVL will undertake preliminary survey and exploration activities to determine the location and suitability of the quality of minerals and the size of reserves both for domestic use in Indonesia and for export.
A technological/economic feasibility study will be undertaken jointly by the two institutions to explore construction and development of a mineral processing facility and steel plant of suitable capacity in the region.