nmdc to appoint 3 agencies for due diligence

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http://www.business-standard.com/india/news/nmdc-to-appoint-3-agencies-for-due-diligencestake-buy/158898/on

State-owned NMDC will soon appoint three different agencies to conduct due diligence for three overseas projects in which it is looking to acquire a stake, according to a top official of NMDC.

"We will be appointing agencies to conduct due diligence for three projects. They will be submitting report in 45-60 days. Our future course of action will depend on their reports," NMDC Chairman and Managing Director (in-charge) N K Nanda told reporters today.

Agencies will be appointed to conduct due diligence for Ridley iron ore deposit of Atlas Mining, Wonarah phosphate reserve of Minemakers Ltd in Australia and an iron ore project in Brazil, he said.

NMDC has already entered into an exclusive agreement with Minemakers to acquire 50% stake in Wonarah deposits, which are considered as one of the largest under-developed phosphate reserves in Australia, with an estimated resource of 1.26 billion tonnes at 12% phosphate.

As the agreement will end by February 28, NMDC may request the Australian company to extend the deadline, he said.

The Ridley project, wholly-owned by Atlas Mining, contains 970 million tonnes of high grade iron ore reserves and can produce 330 million tonnes of ore over 30 years.

Nanda, who is set to leave for Perth to attend the Board meeting of Legacy Iron in which it recently acquired 50% stake, said NMDC will be investing $15 million over a period of three years for the exploration activity that is going on at Legacy's Mt Beven iron ore project.

So far indications are good with regard to the exploration at Mt Bevan. We would make major investment after the exploration is over, he said.

Replying to a query on the proposed doubling of the railway line between Kirandul to Jagdalpur, Nanda said the MoU with Indian Railways is likely to be signed in the first week of March.

According to a senior official of NMDC, the cost of the project will be Rs 800-Rs 900 crore and is expected to be completed over a period of five years.

The Railways will refund the cost after the completion of the project. The doubling of railway line will improve the ore dispatch capacity by 3-4 million tonnes per annum from its Bailadila mines in insurgency-riddled Dantewada district in Chhattisgarh, the official added.