Korean Steel major Posco has moved a step closer to start work on the much-delayed $12-billion steel project in Orissa with the Orissa Mining Corporation (OMC) likely to give it the assurance to supply full quantity of iron ore for the plant under a negotiated price if the Supreme Court order on the linked mines goes against the company.

Sources in the know said the state government has indicated that this option (iron ore at a cheaper negotiated price) could be worked out. The detailed discussions between the companies and government officials are expected to start soon.