Business Standard reported that the 17 year old agreement to develop about USD 2 billion worth in iron ore deposits in the Indian region of in Odisha between, mining giant Rio Tinto and state own Odisha Mining Corporation is about to be nothing but history.

The Indian company, which mines for iron, chrome ores, manganese, granite and gems told Business Standard Friday they are not longer keen to revive a project that hardly showed any sign of taking off the ground.

Mr Saswat Mishra CMD of OMC was quoted as saying that "The JV pact with Rio Tinto presently stands null and void and OMC is no longer willing to revive the project. We have already informed the state government regarding our intent. It is now going to be the government's call whether it wants to renew the project or not.”

When Rio Tinto entered into a JV with OMC back in 1995 to develop two iron ore deposits in Odisha, with a total reserve of about 3.6 billion tonnes, the situation was very different. The demand for iron ore in the domestic market was moderate and the Indian company was struggling.

Mr Mishra said that today iron ore demand is growing locally and internationally and OMC has a cash surplus.

Source - Business Standard

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