Indonesia-based Merukh Enterprises, owned by politician turned businessman Mr Jusuf Merukh, has formed a JV with India-based Salgaocar Mining Industries Pvt Ltd to develop two iron ore mines in Sumba Island in East Nusa Tenggara. Merukh Enterprises’ subsidiary PT Sumba Prima Iron signed the deal with Salgaocar recently. The mines are expected to start operation by the end of 2011. The two mines are estimated to contain iron ore reserves as much as 692.22 million tonnes. Mr Rudy said that PT SPI held a controlling stakes of 55% in the JV, while Salgaocar owns 20% stakes. The remaining 25% of the stakes is owned by German company ESG Eisenerz Stahl GmbH.