ArcelorMittal, NMDC eye Rs 10,000 crore African JV

NRI billionaire L N Mittal-led ArcelorMittal and state-owned NMDC are exploring opportunities to join hands for a Rs 10,000-crore mining project in Africa, and may soon look at partnerships in other counties as well. NMDC and ArcelorMittal entered into a confidentiality agreement a few months back.

To start with they are conducting studies to jointly work on an iron ore project in Senegal, Africa. They are undertaking studies for developing the Faleme iron ore mines for which ArcelorMittal had entered into a pact with the Senegalese government in 2007. The mines have estimated reserves of 750 million tonne of iron ore.

The estimated investment on the integrated iron ore project, including development of a near by port and a railway line, could be Rs 10,000 crore. However, contribution of the companies will depend on their shareholding in the JV, which is still to be finalised.

With the proposed tie-up, NMDC is looking to expand its global footprint. It has already tied up with giants like Rio Tinto and Tata Steel. ArcelorMittal too would be keen on forging alliance with India's largest iron ore miner NMDC as it has been reportedly looking for partners to develop the mines, work on which was halted after the global economic meltdown of 2008.