Indian government for expanded mining and exploration of mineral, once Indian mining company was joint venture with Tata steel. This is since the two firms can leverage their synergy in the field of mining and processing of minerals extracted from such mines to shore up domestic availability of the finished products.

Official sources told Business Line here that at a time when the world’s metals and mineral prices have been on a rollercoaster ride, benefiting several metal and mineral producers and exporters, the proposed joint venture move would help meet the demand for raw materials for the finished products industry domestically, besides augmenting avenues for third country exports.

Accordingly, both the companies would put in place an MoU (memorandum of understanding) shortly. The parent joint venture company would only be a facilitating firm with separate companies being formed for each separate project to be developed.

However, the parent company could also undertake mining activities on its own.

The sources said the joint venture would work for obtaining mining leases for exploration of minerals and other ores, precious metals and diamonds and the joint venture company would be engaged in the business identified by Tata Steel and MMTC. Asked about the structure of the proposed joint venture company, the sources indicated that MMTC would hold equity stake of maximum 26 per cent, which would be subject to the company getting prior nod from its board, shareholders and the Government.

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