Steel Authority of India Limited (SAIL), on Friday, inked a major agreement with Mongolian Government for the allocation of coking coal mines, exploring opportunity for setting up mineral processing units for iron ore and coal, besides steel making units there.
“The MoU envisages exploration of opportunities for investments to be made by SAIL either individually or in consortium with other entities to develop mineral processing/steel manufacturing facility in Mongolia,” a statement by SAIL said here. SAIL has been trying to diversify its coal requirements from the expensive Australian coal to other destinations, including Mongolia and Africa.
The MoU was signed between SAIL and Ministry of Mineral Resource and Energy (MMRE), Government of Mongolia, at Ulaanbaatar, Mongolia, on Friday. SAIL Chairman C. S. Verma and MMRE Vice-Minister T. Garamajav were present on the occasion.
SAIL Chairman, the statement said, “commended the Mongolian Government for its initiatives in developing their mining sector, which shall serve to be crucial drivers of FDI for the country, while also meeting the mineral needs of India and other Asian economies.”
A welcome step
Mr. Garamajav termed the MoU as a welcome step in cooperation between the two countries and hoped that joint feasibility report could help Mongolia set up a mineral processing industry.
As per the MoU, MMRE will provide information on iron ore and coal deposits in Mongolia to SAIL and will offer options of locations and size of steel manufacturing facility for pre-feasibility study, the statement said.
Pre-feasibility study
The official announcement said a joint pre-feasibility study for setting up a mineral processing facility for iron ore and coal, both coking and thermal, in Mongolia, and downstream steel making facilities for domestic consumption and trade, will be taken up by MMRE and SAIL.
SAIL, on the other hand, will select the best available technology to treat Mongolian iron ore and coal deposits based on the feasibility study.
Mongolia was spelt wrong in this article. It has been corrected.
