The LN Mittal Group has reportedly withdrawn its proposal of exporting 30 per cent of the iron ore linkages offered to it for its proposed 10 million tpa integrated steel plant in Jharkhand.

The development paves the way for the signing of the MoU that was delayed over the iron ore export issue. The MoU is now likely to be signed by the first week of October 2005.

The Jharkhand government, so far, has assured the Mittals of iron ore linkages of around 600 million for the project, without mentioning the mines. It is now learnt that the Jharkhand government would offer part of the Chiria iron ore mines for the project. The LN Mittal Group has also been allowed to import superior grade iron ore for the project, if required.

The Chiria mines issue is embroiled in a controversy following Jharkhand government's denial of offering mining rights to Indian Iron & Steel Co, an ailing subsidiary of Steel Authority of India. As of now, it is not clear whether the Chiria mining rights issue has been resolved or not.

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Mittal's Jharkhand project impeded (24-Aug-05)