Tata Steel is planning to procure iron ore from the state owned Odisha Mining Corporation (OMC).
The Tata group firm, according to a report in the Business Standard, is examining feasibility of clinching a long-term pact with OMC to secure iron ore.
On a trial basis, the steel maker has signed an agreement with OMC valid for one year.
The report quoted a source as saying: “Initially, we will be sourcing 0.2 million tonne of iron ore every year on long term linkage from OMC. We have preferred to buy ore from OMC’s Daitari mines in the vicinity of our Kalinganagar facility. To start with, we have an agreement for one year. We may go for an extension depending on quality and pricing of iron ore from OMC and also logistics issues.”
Image Credit : odishasuntimes.com