Why POSCO is not buying iron or at market price and sticking to mining lease?
The objective of the state government of Orissa is to provide Mining Lease in order to attract industries and develop the area. POSCO-India will follow the policy of the Orissa State Govt and obtain the Mining Lease under the same conditions as that of other companies, and pay royalties. If the granting of Mining Lease to POSCO-India is a preferential benefit, it means granting ML to other steel or mining companies is also a preferential benefit. It is believed that if POSCO’s operations technology and its newest facilities are used in Orissa, it would allow effective value addition to Orissa natural resources, and would have a ripple effect on the other steel companies as well.
