BS reported that the possibility of revival of the USD 1 billion jinxed joint venture project between Orissa Mining Corporation and Anglo Australian mining major Rio Tinto appears murky with the state still dithering on the matter.

Though a revised JV pact was prepared after several rounds of negotiation between the once sparring JV partners, nothing has moved forward in the past one year.

A top official of OMC said that “There has been absolutely no progress on the project for the past one year. The matter is pending at the government level.”

The official said that “The fate of the project hinges on the decision to be taken by the government. The revival of the JV does not look bright at this stage.”

A top Rio Tinto executive on Tuesday called on the state Chief Secretary B K Patnaik, understandably to discuss possibility of the project revival.

Mr Patnaik after a meeting with Mr Sam Walsh chief executive (iron ore) of Rio Tinto said that “There were discussions on the iron ore mining project to be taken up jointly by OMC and Rio Tinto. The project was proposed several years back but we haven't decided anything on revival of the JV.”

As per the original JV pact signed between OMC and Rio Tinto, both partners had agreed to export 50% of the mined iron ore while setting aside remaining 50% for domestic consumption.

However, the state government's thrust on meeting iron ore demand for local industries instead of exports seemed to have put the brakes on the revival plan. Chief minister Mr Naveen Patnaik had recently urged the Centre to ban iron ore exports.

(Sourced from BS)