Johannesburg — INDIA's largest iron producer and exporter, National Minerals Development Corporation, announced a deal with the investment arm of the Congress of South African Trade Unions (Cosatu), Kopano Ke Matla Investment Company, yesterday.

National Minerals and Kopano will form a joint venture that will seek exploratory and mining rights for various minerals, focusing on coal, iron ore and manganese.

Kopano was established in 1996 by the Kopano Ke Matla Trust, whose sole beneficiary is Cosatu.

National Minerals chairman and MD Rana Som said the deal is "special" as it will work to bring profits to the community and to "better their lives rather than giving profits to individuals". He said National minerals and Kopano had formulated the deal over the past two-and-a-half years.

Part of the parties' "shared vision" is to increase industrial capacity in SA, to create a new quality of life for poor communities and to create skills training programmes. The joint venture will provide hostels and educational benefits for workers.

The value of the deal could not yet be ascertained, Mr Som said.

He said National Minerals's 6000-odd employees have been involved in scientific mining using "carefully revised technologies", which he plans to use in SA.

Mr Som said these involve "safer" mining methods than those used in SA. Mining companies have been criticised this year because of a number of fatal accidents.