New MoU with Posco likely soon

BHUBANESWAR: Chances of an early renewal of memorandum of understanding (MoU) between the State Government and Posco have brightened with the latter agreeing to delete the iron ore swapping clause. Minister for Steel and Mines Raghunath Mohanty told mediapersons here on Monday that though Posco had agreed not to insist on the exchange clause in its renewed MoU with the State Government, it wants swapping of iron ore within the country. Renewal of the MoU has been delayed because of differences on the swapping clause. The Minister said Posco had submitted a proposal to the State for inclusion in the MoU in lieu of the swapping clause. Optimistic of having a fresh MoU with Posco soon, Mohanty said the State was examining the company’s term of allowing it to exchange high alumina content iron ore with low alumina content mineral. “The State Government  will soon take a decision on whether to allow Posco to undertake swapping of iron ore within the country or the state,” Mohanty said adding that the Steel and Mines Department had been verifying whether similar provisions existed in other MoUs. The MoU between the State Government and Posco lapsed on June 21, 2010 after a gap of five years. However, a new MoU could not be made due to opposition from different quarters on import of iron ore clause.