LCY 13.3% 1.7¢ legacy iron ore limited

100 million a possiblity

  1. 3,281 Posts.

    They talk of 500 mill between 4-5 assets. 500 /5 = 100mill

    Seeking to consolidate its position, NMDC is in talks for acquiring two overseas mining assets and an announcement in this regard is expected shortly.

    Addressing a press conference here, NMDC Chairman Rana Som said the company had earmarked $500 million (about Rs.2,400 crore) for overseas acquisitions this fiscal and was targeting four assets, including two coal and two iron ore, in Australia, the U.S., Russia and some countries in Africa. ?We are confident of acquiring two mining properties overseas within the next 100 days. We are looking at 4-5 assets in the U.S., Russia, Australia and Mozambique,'' he remarked.

    NMDC has already inked a memorandum of understanding to acquire up to 50 per cent stake in Australian mineral exploration company Legacy Iron Ore. It is likely to finalise a sales-purchase agreement by September. Legacy has interests in gold and manganese besides iron ore, and the MoU gives access to NMDC to get into Australia. It will give Legacy the opportunity to source and secure additional resource projects for development and financing, with the backing of NMDC as the company's biggest shareholder.

    While NMDC produces about 30 million tonnes of iron ore, Legacy holds highly prospective iron ore tenements in the central Yilgarn and Pilbara areas of Western Australia. Besides the assets in Australia, the state-run firm is eyeing a coking coal mine in Mozambique.

    NMDC is eyeing acquisitions to expand its capacity and to ensure raw material security for its upcoming steel mills in Chandigarh and Karnataka. It has already forayed in to steel making and is setting up a 3 million tonnes steel plant in Chhattisgarh. It plans to build the Rs.15,500-crore mill by 2014 for which it requires raw material security. Besides, it has a joint venture with Russia's Severstal to set up an initial two million tonnes per annum steel plant in Karnataka at an investment of Rs.25,000 crore, which can further be expanded to 5 million tonnes. It aims to increase production to 50 million tonnes by 2015 from 30 million tonnes.

    He also refuted Karnataka Lokayukta's allegations that the firm incurred huge losses by exporting high quality iron ore at low prices and said all its commercial deals were transparent and in compliance with the decisions made by the Centre. ?NMDC strongly denies and refutes all the allegations made in the Report of Karnataka State Lokayukta in respect of under-invoicing of its exports. Its exports to Japan and South Korea, which has been continuing from 1963, are based on the decisions taken at the level of the Union Cabinet,'' he said.
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