NMDC confirms talks for acquisition of overseas iron ore mines
Reuters reported that Indian iron ore mining major NMDC Limited has begun talks with companies in Canada, Brazil and Australia as it hopes to secure an interest in an overseas iron ore asset.
Mr Rana Som CMD of NMDC during an interview told Reuters that "We have just started the process. The talks are at an initial stage.”
He added that "We have got some offers from Brazil and Australia, apart from Canada.”
Mr Som told "NMDC, being a Navaratna company, can invest up to INR 10 billion abroad (USD 250 million), if the project is viable, attractive and compatible with long term strategies.”
NMDC is setting up a separate unit called the Global Exploration Centre for investing abroad. Mr Som told that "This exploration centre will be used in India and abroad for mining projects. The funds will be decided on the basis of the projects.”
NMDC is India's leading state owned iron ore miner, with three iron ore mines in the country and is expecting iron ore production in the financial year ending March 2008 of 30 million tonnes. It is also setting up a pig iron plant with a capacity of 800,000 tonnes per annum and an iron ore pelletization plant with an annual capacity of 1 million tonnes.
hmmmm, food for thoughts...
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