new article on nmdc

Here is a new article on MAK. Seems to indicate the Due diligence for MAK won't be complete until March end, obviously then final negotiations would ensue. That may mean it will take more time than has been expected.

(Oh and I was WRONG on the use of LCY as the vehicle for MAK, I still think it is stupid for NMDC but it is their money after all. I hope that soothes the feelings of hurt NMDC posters.)

That being said, it does mention Minemakers by name as a company that it plans to buy, perhaps that is a firmer indication that the deal will go ahead, even if it takes more time.

from
http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/metals-mining/nmdc-eyes-four-more-overseas-buys-each-in-russia-brazil-mozambique-and-australia/articleshow/11750337.cms

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"HYDERABAD: India's largest iron ore producer NMDC, which has acquired a 50% stake in the Australian iron ore firm Legacy Iron Ore recently, is set to begin due diligence process to acquire four more overseas mines, one each in Russia, Brazil, Mozambique and Australia.

"The four mines include one coking coal mine each in Russia, Mozambique and Australia and an iron ore mine in Brazil. Along with the rock phosphate mine of Minemakers in Australia for which negotiations have already began, we are currently pursuing five foreign acquisitions," the NMDC CMD NK Nanda told ET.

Refusing to identify the overseas coal and iron ore firms that NMDC is looking to acquire, Nanda said, "We have signed non-disclosure agreements with these companies and the due diligence process is going to begin shortly."

State-owned NMDC, which has a net worth of 14,200 crore, is entitled to spend 5,700 crore on its overseas acquisitions as per the terms of the Indian government regulations for public sector enterprises. Nada said the company is aiming to complete the due diligence process for at least two overseas mines - coking coal and rock phosphate mines in Australia - by March-end and complete the due diligence exercise for the other three foreign mineral resources by June.

"Of the three coal mines in Mozambique, Russia and Australia, we are sure of closing deals with at least two during next fiscal and may end up buying all the three by March 2013. We expect to complete the acquisition process for the Brazilian iron ore asset by mid of next fiscal. In all, along with Minemakers, we plan to buy five foreign mines during 2012-13," he said.

Nanda said the iron ore giant has recently dropped its plans to acquire two overseas coking coal mines, one each in Russia and US, at the advanced stage of negotiations. "This is because we found during our due diligence exercise that these entities have their roots in certain tax heavens of British Virgin Islands and we wanted to be away from companies with links to tax heavens as [a matter of] abundant caution."

The Russian coal mine NMDC is negotiating with has some 80 million tonne coking coal, involving an investment of $200 million that includes around $80 million towards acquisition and the balance for development.

With around 60 million tonne reserves, the Australian coal mine is estimated to involve a total investment of $200 million, which includes some $10-15 million towards acquisition and the balance for development. This mine is currently producing 20,000 tonne coal a year. Nanda said the Brazilian iron ore mine, located close to the coast, has huge reserves of 1.5 billion tonne and is waiting for exploration works"

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