nmdc approved wonarah investment, in quarterly, page-62

http://zeenews.india.com/business/companies/nmdc-to-bid-for-russias-vincy-coal-in-2-3-days_33004.html

New Delhi: Looking to buy 2-3 properties overseas by year-end, state-owned NMDC is likely to put a bid for acquiring 100 percent stake in Russia's Vincy Coal in two or three days.

Bid for Vincy Coal, which is estimated to have coking coal reserves of 70-100 million tonnes, will be submitted by November 1 by NMDC, said a source in the know of the development.

NMDC Board will meet this week before submitting the bid, the source said, adding, "it will be a low cost acquisition and NMDC is eying to acquire 100 percent stake in Vincy Coal." The source declined to disclose the bidding amount.

Of late, NMDC has been working on acquiring several "low cost" assets and in September, it had entered into a deal to acquire 50 percent stake in Australia's Legacy Iron Ore for little over Rs 90 crore.

On October 20, it signed a share subscription agreement with Legacy for the acquisition.

This includes, buying "some properties" of one of the iron ore companies in Australia, the source said, adding that properties of Brazil's Greystone Mineracao do Brasil and 50 percent stake in Wonarah phosphate deposits of Australia's
Minemakers are also on NMDC's radar.

However, the Indian mining major has sought some more information from Greystone before entering into a deal, the source said, declining to comment further.

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 NRI Pramod Agarwal.

The proposed mine area of Greystone is understood to have reserves of 260 million tonne of iron ore.

While for Minemakers' phosphate deposits in Wonarah, NMDC already has an MoU with the Australian firm for acquiring 50 percent stake, both the companies are currently engaged in a pre-feasibility study of the deposits.

The Indian miner may also repay Minemakers the costs already incurred for Wonarah -- the largest undeveloped rock phosphate project in Australia -- as and when it enters into the deal for acquiring the stake, according to the source.

"All these are going to be low-cost acquisitions, totalling USD 500 million and is aimed to be sealed by the end of this year," said the source.

The NMDC Board had also met on October 10 to decide on the proposals but it could not take a final call as there were "some unanswered issues" related to the acquisitions, the source added.