The Jharkhand government has reportedly rejected the Mittal Group's demand of allowing iron ore exports, in connection with the 10 million tpa steel plant in the state.

The Mittal Group, going by reports, had demanded iron ore linkages of 600 million tonnes with the permission to export 30 per cent. The Jharkhand government has rejected the demand for exports, which means that the Mittals might shelve the project, or will have to go ahead without the export clause.

ProjectsToday adds: According to information available prior to the current development, the Mittal group and the Jharkhand government were in broad consensus about the project details, except for the issue of mining rights. In the draft MoU, that the Jharkhand government finalized earlier in August, the state assured linkages of 600 million tonnes but did not specify which mines would be allotted. There was no mention about the export clause in any reportage and field information available with ProjectsToday.

The development reminds one of the Posco project where Orissa government's refusal to accept the Korean steel major's demand of iron ore export had led to considerable delay and uncertainty over the 12 million tpa project. Posco, it may be recalled, withdrew the export clause and is now proceeding with the project.

Also See:

Mittal steel project in Jharkhand: MoU by end-August (12-Aug-05)