State-run NMDC, India's largest iron ore company, has informed that it will sign a memorandum of understanding with global miner, Rio Tinto on August 18 to prospect for iron ore.

Both companies plan to jointly explore for iron-ore assets in India and overseas. According to reports, Rio is seeking to tap India's iron-ore reserves, the world's fifth biggest, as it plans to triple production to 600 million tons a year with expansions in Australia, Guinea and Brazil.

India exports about 90 million tonnes of iron ore, mainly to China. Iron- ore prices have grown almost four-fold since 2001 to a record level because of surging demand in Chinese market.

NMDC's shares are presently trading at Rs 359 on BSE. During the day, it touched an intraday high of Rs 372 and low of Rs 325 respectively.