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05/10/2011

http://news.in.msn.com/business/article.aspx?cp-documentid=5487370

NMDC may complete 3 overseas acquisition deals this fiscal


Hyderabad, Oct 4 (PTI) Close on the heels of acquiring 50 per cent stake in Australia''s Legacy Iron, state-run iron ore miner NMDC today said it may close three more overseas buys in the current fiscal.
"Deals with Minemakers Ltd, an Australian firm having Phosphate deposits; Brazilian mining firm Greystone Mineracao do Brasil and Vincy Coal project in Russia are in advanced stages of negotiation and may be sealed in the current fiscal," NMDC Finance Director S Thiagrajan told PTI.
"All these are good properties. A team is in Australia now to study Minemakers'' Wonarah Phosphate deposits and will submit its pre-feasibility report soon," he added.
NMDC has already done the due diligence for Vincy Coal Project and is likely to bid for the project by the end of the current month itself, Thiagrajan said.
"For Greystone also, we have done the due diligence," he said, adding that all the three proposed deals were likely to be closed before the end of this fiscal.
He, however, declined to reveal the total investments that would be required for the projected three acquisitions.
NMDC and Minemakers may form a JV in which NMDC will take a 50 per cent stake in Wonarah. The state-run miner may also repay Minemakers'' the costs already incurred for Wonarah, the largest undeveloped rock phosphate project in Australia.
Vincy in Russia is said to have total reserves of 70-100 million tonnes of coal reserves.
NMDC has been in talks for the past few months to acquire a substantial stake in Greystone Mineracao from London-based Zamin Advisors, a private company controlled by an NRI, Pramod Agarwal.
The proposed mine area is understood to have reserves of 260 million tonnes of iron ore. According to Thiagarajan, NMDC has got as many as 70 overseas offers for acquiring stakes.
NMDC may acquire 100 per cent stake in Vinci Coal and 50 per cent in Minemakers while, while a decision on stake is yet to be taken in case of Greystone, he said.
The company had in last month bought 50 per cent stake in Australia-based Legacy Iron Ore as for over Rs 92 crore. PTI GDK SSR MM