SAIL eyes Mongolia's iron ore, coal resources

NEW DELHI: Indian steelmakers have set their sights on mineral rich Mongolia, chasing the huge mineral wealth that's helping the once pastoral landlocked economy register one of the fastest economic growth rates in the world.

Steel Authority of India Ltd (SAIL) is considering replicating its successful public private approach in Afghanistan in Mongolia.

The two countries have signed a Memorandum of Understanding to study the possibilities of setting up of mineral processing facility for iron ore and coal, both coking and thermal, in Mongolia, and downstream steel making facilities for domestic consumption and trade.

In a statement from Ulaanbaatar, Mongolia, the government owned steel maker said the MoU covers exploration of opportunities for investments to be made by SAIL either individually or in a consortium with other entities.

As per the MoU, the Mineral Resource & Energy in Mongolia will share information on possible iron ore and coal deposits to SAIL and offer options of locations for investments.

A joint pre-feasibility study for setting up 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, the statement said.

SAIL, on the other hand, will select the best available technology to treat Mongolian iron ore and coal deposits based on the feasibility study. The MoU envisages exploration of opportunities for investments to be made by SAIL either individually or in a consortium with other entities to develop mineral processing/ steel manufacturing facility in Mongolia.

This follows, the visit of a high-level Mongolian to SAIL's Bhilai Steel Plant in November 2011.

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