Bhubaneswar, Aug. 18: Global majors Posco of South Korea and BHP Billiton of Australia have shown interest in setting up a steel project at Duburi in Jajpur district of Orissa. The project will also include an associated coke plant for power generation, iron ore mining and development of the Dhamra port.
An eight-member delegation comprising senior officials of Posco and BHP Billiton met chief minister Naveen Patnaik at the state secretariat here last evening to discuss the project. The estimated cost of the project is Rs 39,000 crore.
Steel and mines minister Padmanava Behera, energy minister Surya Narayan Patra and senior government officials were present at the meeting.
BHP Billiton is the world’s largest diversified miner with market capitalisation worth $31 billion. Posco, on the other hand, is a major steel-maker.
The Australia-based BHP Billiton operates in over 90 countries with a presence in every key mining area and several of the world’s premier oil and gas basins.
Posco, which has a global production capacity of 28 million tonnes, has placed India just after China in its global production plans. Sources pointed out that the company also intends to undertake bauxite and alumina mining projects in India.
According to the proposal, the steel plant would be set up on 3,000 acres of land at Duburi while a captive power plant would come up somewhere between Duburi and Dhamra port in Bhadrak district.
While 35,000 people would be employed in the proposed plant, the two companies have set a target to export 12 lakh metric tonnes of iron ore and import 8 lakh metric tonnes of coal through Dhamra port every year.
The companies have also projected an annual production of 3 million tonnes of steel.
After the discussion, the chief minister directed officials of the industry, mines and energy departments to study the project proposals and submit a report to him as promptly as possible.
Official sources said a memorandum of understanding would be signed between the state government and the companies by December this year.
