NEW DELHI (Commodity Online): Mining major NMDC and Steel Authority of India Ltd. (SAIL) has signed a Memorandum of Understanding (MoU) to develop a limestone project at Arki in Himachal Pradesh. The proposed Rs. 260 crore joint venture will have 50:50 equity participation of the two companies. Talking to newsmen after signing of the MoU, Chairman of NMDC Rana Som said, proven reserves of the mine for which NMDC has got mining lease is 90 million tonnes of low silica limestone and 8 million tonnes of dolomite. He said the mines would last for about 50 years. Som said, the joint venture will start production within three years.

SAIL Chairman S.K. Roongta said that SAIL needs 1.6 million tonnes of low silica limestone for its own units which it obtains from Jaisalmer and through imports. He said post expansion, SAIL will need 3 million tonnes and Arki mines will provide 1 million tonnes. Therefore, he said, the project is good for both the companies.

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Speaking on the occasion, the Minister for Steel Virbhadra Singh emphasized on the need to preserve the ecology and the natural beauty. He said Himchal Pradesh has vast deposits of limestones but the state did not want to disturb the ecology. Virbhadra Singh said for Himachal Pradesh, tourism will remain the first priority. He urged NMDC to respect the sentiment of people and preserve the natural beauty as mining invariably leaves sear. He said NMDC has the expertise, manpower and resources to ensure this.

Minister of State for Steel A. Sai Prathap, Secretary Steel Atul Chaturvedi, senior officers of the Ministry and SAIL and NMDC were also present during the signing of the MoU