NMDC iron ore company intends to acquire 50% stake in Legacy 2011-05-25 11:26 Source: Commodity Online
India's largest iron ore producer, state-run mining company (NMDC), chairman of RanaSom said Legacy Iron Ore Company of Australia has acquired a 50% stake for an initial agreement signed, with a total value of about 1.35 billion rupees ($ 29,800,000).
Som said the company expected to complete the transaction within 90 days of the financial due diligence, Legacy will seek approval of the transaction within 28 days. The signing of the agreement with the NMDC active strategy of overseas acquisitions in line will decrease the company's procurement costs and reduce risk.
Legacy 2 in Australia has been the development of iron ore exploration license, estimated reserves of 1.3 million tons. In addition, the company also has some gold, manganese ore and coal mining permits, NMDC will become partners.
Som said the company also reached an informal Australian Minemakers memorandum of understanding, joint development of Australia's Northern Territory is located in one of the largest phosphate. NMDC will make a detailed project report as soon as possible, if satisfactory, will seek to acquire a 50% stake in Minemakers. In addition, NMDC and Steller resources company also plans to develop Tarcoola iron ore project.
