NMDC to buy 50 per cent in two iron ore mines in Oz

Posted By: Religare
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NMDC to buy 50 per cent in two iron ore mines in Oz
Indian iron ore major, NMDC is likely to close a 50 per cent acquisition deal in two Australian iron ore mines by month end and is optimistic on closing another two such deals by Jul"2011.

A company spokesperson, quoted, "NMDC is in advanced stage of deals for buying 50 per cent stake each in two Australian iron ore mines -- in Western and Southern part. The deals are likely by May."

The two Australian mines acquired by the Navratna firm have a combined estimated capacity of 1,000 million tonnes of iron ore. Additionally, NMDC is eyeing acquisition of two non-iron ore assets in Russia, US, Australia and Africa by Jul"2011.

For FY12, the company is also planning to invest about US$500 million to expand its capacity and to ensure raw material security for its upcoming steel mills in Chhattisgarh and Karnataka.

Chairman of NMDC, Rana Som, quoted, "A navratna company can spend one-third of its net worth on overseas acquisitions which comes to US$1.2 billion (about Rs. 5,400 crore) for us. 

This fiscal our target is to spend up to USD 500 million and we have already shortlisted four assets abroad."

Read more about: nmdc, mines, bse, nse
Story first published: Monday, May 9, 2011, 9:30 [IST]
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