NMDC close to acquiring coking coal mine in Russia
24 Sep 2011
Close on tyhe heels of acquiring a 50-per cent stake in Aysralia's Legacy Iron, state-run mining major National Mineral Development Corporation (NMDC) is now close to acquiring a 'small' coking coal mine in Russia. The company will be seeking approval of its board for the acquisition over the next two weeks.
NMDC, a navratna public sector undertaking, had, on Thursday, announced its first overseas acquisition by acquiring a 50-per cent stake in Australian miner Legacy Iron Ore, for Rs92.2 crore (A$18.89 million). (See: NMDC acquires stake in Legacy Iron Ore, eyes Mozambique coal project)
Rana Som, chairman and managing director of NMDC, said the proposed Russian acquisition is a small asset and a company team is carrying out due diligence of the Russian mine.
"We are expecting to complete the due diligence and approach the board in this regard in next 10-12 days," Som said on the sidelines of a seminar in Delhi.
NMDC, he said, is also entering into a memorandum of understanding (MoU) with Russian steel major Severstal for building a two million tonne steel plant in Karnataka.
As per the MoU, NMDC will supply iron ore to the joint venture while Severstal will transfer a coking coal asset in Russia in favour of the venture.