India's state-run miner NMDC Ltd has agreed to acquire a 50-per cent stake in Australian mining group Legacy Iron Ore Ltd, marking NMDC's entry into the Australian resource sector.
The stae-owned mining company said it has signed a memorandum of understanding (MoU) with Legacy and any acquisition would be subject to due diligences and necessary approvals.
NMDC did not disclose the deal value but merely said it would follow up this investment (if it materialses) to expand its geological footprint and position itself for the acquisition of additional iron ore and coal assets in Australia.
NMDC chairman and managing director Rana Som said the proposal was still in early stages and the cost of acquiring shares is yet to be determined.
"The MoU gives access to NMDC to get into Australia and devise further strategy. The valuation of the stake is yet to be done," reports quoted Som as saying on Wednesday.
Set up to search for iron ore and gold deposits, Perth-based Legacy has interests in gold and manganese, besides iron ore. NMDC intends to use Legacy to further its commodity interests in Australia.