Set to buy a gold mine in Tanzania
NMDC has set in motion the process for acquiring a stake in a coal mine in Alabama in the U.S. and buying a gold mine in Tanzania. It is also working on securing 50 per cent stake in a rock phosphate asset in Australia.
The company is also planning to buy-out iron ore assets overseas. “Due diligence is on for acquiring a stake in a running mine at Alabama, which has reserves of about 70 million tonnes of coal. In addition, there is about 161 million tonnes of coal within the natural zone of access of the project,” NMDC Chairman Rana Som said here.
NMDC has already started due diligence for buying stake in the coal asset and the process is expected to be completed by June 15. NMDC is also set to buy a gold mine in Tanzania. “NMDC was awarded three prospecting licences for gold in Tanzania. One of them is very good. In the next six months, the Tanzanian Government will give us the mining licence,” Mr. Som said.
He said NMDC might rope in a partner for a joint venture to mine the leased asset. On the phosphate asset, he said the company has had a detailed negotiation for Wonarah phosphate deposit. “We will acquire 50 per cent of the project owned by Minemakers Ltd, which is a listed company in Australia,” he added. The joint venture agreement is likely to be signed by October this year.
About its proposed joint venture with Russia's Severstal, the chairman said the two companies were continuously negotiating and that by September-October this year, a joint venture agreement was likely to be signed.
Mr. Som said the company had earmarked Rs.3,200 crore for capacity expansion during the current fiscal of which Rs.2,500 crore will be spent on its steel plant in Chhattisgarh. The production target for the current fiscal is 30 million tonnes.
Earmarks Rs.3,200 crore for capacity expansion
May rope in a partner for a JV
to mine the