NMDC likely to acquire 2 iron ore mines in Australia: Rana Som
04 February 2011
National Mineral Development Corporation (NMDC) is likely to acquire two iron ore mines in Australia, Rana Som, chairman and managing director of the state-run iron ore miner, said in Hyderabad today.
Speaking on the sidelines of the 6th national convention of the Indian chapter of the UN Global Compact Network. He said the deal is expected to be signed in the first week of March.
"We are precisely targeting six assets, with primarily three iron ores and three for coal in Australia, Mozambique and Albania. We have already located and almost finalised acquisition of two such assets," Som said.
"Signing of the settlement is in the first week of March. Our board has also cleared the deal. Both are iron ores in Australia. The deal will be closed in the current financial year," he added.
He, however, refused to divulge details of the acquisitions like cost and financing options.
Som's revelations come after a similar statement issued by Ajay Mathur, general manager and nodal officer of International Coal Ventures (ICVL).
ICVL is a consortium of five state-run companies that includes, NMDC, Coal India, NTPC, Steel Authority of India Ltd, Coal India Ltd and RINL.
"Since we are leveraging our ability to explore, this may not be a big investment now in terms of money, but it will be a large investment in terms of developing. That is how we are trying to acquire it," the NMDC chief said.
Som said the high railway freight tariffs have affected its long-term contracts for iron ore shipments to Japan. The Railways charges three times higher freight rate for export consignments.