Looks like NMDC is upset. The final line from Nanda who was the...

Looks like NMDC is upset. The final line from Nanda who was the temporary CEO says the project was unprofitable which was communicated to the company as well. I have talked to AD over the last 6 months and that is not the impression I got. It appears to my outside view that MAK called them on the approval process dragging on and they have called it 'unprofitable' to save face. Previous Feasibility studies note that it is a profitable project but requires significant capital.

The other reason why I would note Nanda is not truthful is previous projects that NMDC have decided not to go with have been announced to the market, no decision was spoke of until MAKs recent announcement. A bit of sour grapes. Especially with public NMDC comments as recently as April that the deal would be signed by Jan/March/June (as it dragged on).

Anyway nothing that wasn't apparent over the last few months.

http://economictimes.indiatimes.com/news/news-by-industry/indl-goods/svs/metals-mining/minemakers-an-australian-rock-phosphate-firm-drops-nmdc-from-its-wonarah-project/articleshow/13915393.cms
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HYDERABAD: In a setback to India's plans to secure rock phosphate resources for its fertiliser industry and NMDC's overseas acquisition plans, Australian rock phosphate firm Minemakers has decided to call off the agreement with the state-owned iron ore producer.

In June last year, NMDC had entered into a pact with Minemakers to buy 50% stake and it was in the process of obtaining necessary clearances from the Union fertilisers ministry. The Australian firm, in a communique to the local stock exchange on Thursday, said it has lost hopes on NMDC to take the deal forward and it will now start the process of scouting for a new strategic partner.

In 2010, Minemakers began the process of roping in a strategic partner for its Wonarah phosphate project in Australia's Northern Territory given the large resource size and proximity to key regional markets. Eyeing a well-funded and reputed joint venture partner for the project, the Australian firm entered into a non-binding memorandum of understanding (MoU) with NMDC.

Wonarah deposit is one of the few major undeveloped rock phosphate deposits in the world, ideally located in a politically stable jurisdiction, with significant infrastructure in place. For several years, India has been scouting for rock phosphate resources and had even directed its public sector enterprises to form consortia to bid for overseas resources.

Though NMDC did not disclose the size of the Wonarah project and likely cost of acquiring 50% in the venture while signing the MoU, the Australian Financial Review in June last year pegged the project at A$1.5 billion. "The MoU had an exclusivity period that expired earlier this year and the MoU itself expired in early June 2012," said Minemakers' chief executive officer Cliff Lawrenson in the communique.

Further, Lawrenson said: "The Minemakers Board has decided that it can no longer prolong discussions with NMDC - the discussions remain inconclusive whilst NMDC seeks further input from the Department of Fertilisers - and therefore the Board has determined that it will pursue alternative potential JV partners through a co-ordinated strategic partnership process."

He said Minemakers will now formally commence the process to rope in suitable partners for a joint venture on Wonarah project. However, not closing the doors for NMDC completely, he said: "Minemakers remains open to NMDC participating in this process." NMDC says it is not keen on participating in the fresh process.

NK Nanda, NMDC's director (technical ) who is responsible for overseas acquisitions , said the company's overseas transaction adviser presented the Minemakers' case as unprofitable, which was communicated to the Australian firm as well."
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