Thanks for that Saracen. Interesting article that points towards...

Thanks for that Saracen. Interesting article that points towards progress, even if we don't get any information that soon.

http://www.business-standard.com/india/news/nmdc-hastens-rs-4655-cr-investment-plan/462945/

The headline amount of Rs 4,655 crore for investment by NMDC is AUD 880 million, and is to be used to diversify into 5 new areas of business. Sounds healthy for initial investment acquisitions, however Mr Nanda says further down in the article:

"Also, Rs 200 crore will be spent in new acquisitions in Australia. We are looking at acquiring phosphate mines there,” he said.

That 200 crore of Indian rupees is about $38m. If that includes the $18.89m for the placement in LCY, that leaves less than $20m for the other acquisitions. Hopefully that money is already earmarked from this current year, so perhaps we only have to share that $38m with say a coal acquisition. Would be better if it was for each acquisition.

All just conjecture at this point, as quotes by the NMDC chairman in an on line publication aren't necessarily accurate. And we did get the statement by then chairman Rana Som in the 18 October 2011 LCY ann that they will be acquiring significant interests in resource projects via reimbursement of development costs, typically in the $20-40 million range. Which sounds very much like what we expect as the terms for Wonarah JV.