South Korean group Posco has selected two Indian firms for its proposed 6Mt/y facility at Halligudi area in Gadag district, Karnataka, India to ensure speedy clearances and uninterrupted iron ore supply.

It signed an agreement with Bangalore-based Hothur Group and Goa-based Salgaonkar Mines, both of which own iron ore mines in Karnataka, and offered them 49% in equal proportion, while retaining the majority itself.

By tying up with Hothur Group and Salgaonkar Mines in the project, Posco should have fewer problems in getting clearances, besides ensuring uninterrupted supply of iron ore to the plant.

Coking coal would be entirely imported to feed the plant, a source said.