RINL enters into joint venture with Manganese Ore India Ltd

KOLKATA: Public sector steel major Rashtriya Ispat Nigam Ltd (RINL) has entered into a joint venture with Manganese Ore India Ltd (Moil) to form a ���RINMOIL Ferro-Alloys (Private) Ltd���, to produce ferro alloys. The two partners will have equal stakes in the joint venture company which was incorporated last Wednesday (July 29, 2009).

The move comes close on heels of Rinl���s plans to acquire a controlling stake in the Bird group of companies. The latter, which comprise a clutch of mining firms, is slated to give Rinl access to a captive iron ore base for the first time since inception.

Rinl, which is currently implementing a project to raise steelmaking capacity to 6.3 million tonne, said it would require nearly 70,000 tonnes of silico manganese, another 15,000 tonnes of ferro silicon annually, after the expansion. In addition, it would also need about 2,000 tonnes of ferro manganese, the supply of which, is likely to be ensured by the new venture. Incidentally, Moil had earlier acquired 100 acres at Bobbili Growth Centre in Andhra Pradesh���s Vizianagaram district for the joint venture company.

The joint venture company shall initially install and commission the furnaces to produce ferro alloys based on a feasibility report prepared by engineering consultants, Mecon Limited.