"I believe the risk of board rejection is low for reasons above"
------------
Top post. If NMDC wanted out, they had the perfect opportunity when the NLC CMD & ECT had the recent do or die chat. NMDC have committed at the highest level.
Remember too, the Australian High Commissioner, Austrade, Indian Coal Ministry, Dastur, Thermax etc have all been heavily involved. It would be a massive slap in the face to all these & more if NMDC pulled out at this very advanced stage. Lots of questions would be asked as to WHY, especially considering Indias thirst for steel tech.
https://www.argusmedia.com/en/news/...les-with-rail-steel-demand?backToResults=true
"
Sail had been the sole provider of steel rail track to Indian Railways but it has been
unable to keep pace with the rapid expansion of the country's railway network and demand for rail track....Indian Railways has
limited options for buying rail track as a federal order
requires state-controlled companies to buy domestic steel for government projects unless the required quality of steel is not made in India"
https://www.reuters.com/article/us-...l-auto-firms-spar-over-sourcing-idUSKCN1P420K
"
India’s steel ministry is putting pressure on automakers to use locally made steel by refusing to back down on tougher import rules despite warnings that the new regulations could disrupt the production of
cars, government and industry sources said."
Below quote from ECT 2016 Annual Report.
"As economies develop and modernise, steel consumption per capita grows, reflecting a wide range of growing applications – basic infrastructure, water treatment plants, food processing distribution centres, roads, bridges – and, as the middle class emerges, durable goods such as appliances and
cars.....Enter Matmor technology; A means to separate iron and steel demand from coking coal requirements"
http://www.ectltd.com.au/matmor/the-matmor-product/
"The MATMOR Process delivers a clean iron product
tailored to the size/shape and carbon content
requirements of the end user. MATMOR iron is a high-quality substitute for, or supplement to, scrap metal feedstock used in Electric Arc or Induction Furnaces."
Key word - "
tailored". Matmor can be produced to whatever the end user wants - rail, car etc.
The Indian auto industry also has similar domestic "made in India" Govt requirements to the rail industry. Media last week stated the Indian
auto industry is on the verge of temporary closure due to lack of
domestic steel. Given the above quoted very strong language by the Steel Ministry, I can imagine the India Steel Ministry being just as keen on Matmor as the Indian Coal Ministry as quoted in the Jan 3 ECT Ann.
“We were highly encouraged following our recent meetings with the
Ministry of Coal, who are driving their own internal activities to support the signing of the RCA and commencement of the project.”
Throw in the
currency exchange woes, the clear profitability advantages outlined in the
Dastur 2016 TEF study... & it's very easy to see the NMDC CMD getting on the front foot imo.
The Indian Government heat is definitely on Indian firms to innovate, invest in R&D, reduce costs, produce domestically and do it pronto. Remember
why NLC changed their name to NLCIL? It was because they
are expanding into other areas like steel. Proactive is NLCIL & we believe NMDC will now take a similar stance. All imo.
ps... for those wondering if the 5m 1c bid is a prop - I can assure you it's not. The bidder is us & we are more than happy to add to the collection for all the reasons Bullbear mentioned.
tick tock...
