NMDC to ink agreement with Severstal

State-owned NMDC will ink an agreement with Russian firm Severstal to set up a steel plant in Karnataka with a capacity of three million tonne per annum (mtpa). Both the parties will sign an agreement by December to form 50:50 joint venture. The three mtpa steel unit would entail an investment of about Rs 14,000 crore to Rs 15,000 crore.

NMDC had signed a memorandum of understanding with Severstal in December 2010, for setting up a 5mtpa steel plant in Karnataka.

Recently, the company was likely to acquire 50% stake in Australia's Legacy Iron Ore for A$18.89 million. A new company would be the developer of the Mt Bevan JV project, if shareholder and regulatory approval was obtained. The acquisition and deal would represent the first overseas acquisition by India’s NMDC.