Australia approves NMDC's 50-% stake acquisition in Legacy Iron Ore
10 Dec 2011
NMDC, India's largest iron ore producer, is close to making its first overseas acquisition after its proposal to acquire a 50-per cent stake in Australia's Legacy Iron Ore for $18.9 million was approved yesterday by Australia's Foreign Investment Review Board (FIRB).
The state-owned company has been pursuing the Perth-based iron ore explorer since May, which has both thermal and coking coal and mines located close to existing road, rail and port facilities.
''It is pleasing to receive this notification (from FIRB), which is one further positive step completed towards formalising NMDC's investment into the company,'' Legacy managing director Ms Sharon Heng said in a statement.
''The Board of Legacy met with NMDC officials during the week, and was encouraged that both parties could agree on a path forward to advance Legacy and increase value for all shareholders,'' she added.
Legacy shareholders are being asked to approve the deal at an extraordinary general meeting to be held on 16 December.
Legacy holds prospective iron ore tenements in both the central Yilgarn and Pilbara areas of Western Australia and holds five iron ore and gold exploration licences.