NMDC in JV with CMDC for mining project

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New Delhi, July 4: : State-run National Mineral Development Corporation (NMDC) has formed a joint venture company with Chhattisgarh Mineral Development Corporation (CMDC) to set up a Rs 1,500 crore mining project in the state.

The joint venture company, in which NMDC holds 51 per cent and the rest by CMDC, was registered last month, a spokesperson of NMDC said.

The official said the two partners would now prepare a road-map for going ahead with the proposed mining project, which would exploit deposit number 13 of the Bailadila mines in Chhattisgarh. The project would have an annual capacity of 10 MT.

According to estimates of NMDC, which carried out exploration way back in 1994, the deposit number 13 has an estimated iron ore reserves of about 320 million tons with average ferrous content of 67 per cent.

NMDC had inked a memorandum of understanding with CMDC to develop deposit number 13 through a JV in July last year.

The Chhattisgarh government has allocated 413.74 hectares in favour of NMDC for preparation of mining plan to be approved by Indian Bureau of Mines (IBM) and asked the PSU to subsequently apply for forest clearance under Forest Conservation Act, 1980.

"NMDC has already submitted the mining plan to IBM.