Pohang Steel Co has shortlisted seven Indian mining companies to develop captive iron ore mines that would feed the 12 million tpa integrated steel plant coming up in Orissa.

The companies include National Mineral Development Corporation, MMTC, Orissa Mining Corporation, Sesa Goa, Kudremukh Iron Ore Co, and a few others.

Posco has planned to invest $500 million in the mining venture. Earlier, Posco had decided to collaborate with BHP Billiton -- a partnership that did not fructify. Posco has also decided against associating with Rio Tinto of Australia that supplies iron ore to Posco's Korean facility.

Posco has also stated that it would not form a joint venture with the Indian mining company selected, preferring to maintain instead a "supplier-customer" relationship.

Posco's Indian operations will be carried out by Posco India Pvt Ltd that was incorporated under the Indian Companies Act, 1956, on 30 August 2005.

Also See:

Posco incorporates Indian arm (1-Sep-05)