KOLKATA: KIOCL , the iron ore mining company that was forced to shut down operations in Karnataka on environmental grounds, is all set to re-enter the business in fresh territory across the country in West Bengal KIOCL has joined hands with the West Bengal Mineral Development & Trading Corporation ( WBMDTC ) to form a Rs 850 crore joint venture for exploration, extraction and beneficiation of iron ore for the first time in the state."KIOCL will pick up a 49% stake in the new joint venture, while WBMDTC will have 51% shareholding. The new company will utilise KIOCL's expertise in mining and WBMDTC's assets to look for iron ore," said Malay Chatterjee , chairman of state-run KIOCL.WBMDTC chairman Amlan Basu , who spearheaded the initiative, said: "Geological findings indicate areas adjoining Jharkhand such as Purulia, Bankura and Belpahari in West Bengal hold significant potential for iron ore reserves.Bengal already has big coal reserves. If we can establish presence of iron ore, the state's economy will receive a big boost."WBMDTC is poised to start mining next week at Deocha-Pachami, the country's biggest coal block with an estimated 2 billion tonnes of reserves."If the joint venture successfully manages to find iron ore in the state, it will be a win-win for both," Chatterjee said.KIOCL is currently reduced to pellet making operations and will get a fresh lease of life.KIOCL is present in Andhra Pradesh and now in Bengal and no longer restricted to Karnataka, he said, adding that the company is now on its way to becoming a national company."We are at a preliminary stage. The initial work will take almost a year. Depending on whether it is found to be economically viable, we will prepare a techno-feasibility report and possibly go into pellet making or beneficiation later," Chatterjee said.With iron ore prices hitting rock bottom in the past one year, pellet prices, too, have dropped. Domestic demand has dwindled and over half of the total installed capacity remains unutilised.WBMDTC, which is 100% owned by the state government, is the nodal agency for facilitating mining development and mineral-based industries in West Bengal. KIOCL's mining activities at Kudremukh, 110 km from Mangalore, came to a halt from the end of 2005 after the Supreme Court confirmed the status of the Kudremukh National Park area over the mines. The company now uses outsourced haematite iron ore to convert into iron oxide pellets.