NMDC in overseas consortium for majority stake in Australia's Atlas Iron mine

An international consortium that includes India's biggest iron-ore producer, National Mineral Development Corporation (NMDC), has made a $230-million bid for a 70 per cent stake in a mine owned by Australia's junior miner Atlas Iron Limited.

NMDC has teamed up with Saudi-based ABS Consulting and ASX listed Boulder Steel Ltd for a 15-per cent stake in the mine, with ABS Consulting hold a majority with 55 per cent, while Boulder Steel will take up the remaining 5 per cent, The Economic Times reported.

The paper, citing a source said that NMDC will only buy 10 per cent stake at $70 million but would get an addition of 5 per cent stake free for providing its technical expertise.

According to unconfirmed reports the consortium is looking for a stake in Atlas' $3-billion Ridley project, which has estimated reserves of about 2 billion tones of iron ore.

Perth-based Atlas Iron is engaged in the operation of the Pardoo iron ore mine and the development of the Wodgina and Abydos mines in the Pilbara in Western Australia.

Atlas's projects include Pardoo Project, Ridley Magnetite Project, Abydos Project, Wodgina Project, Mt Webber Project and Midwest Project.