Govt to approve NMDC's 50% stake buy in Legacy Iron Ore
New Delhi: The government will soon approve NMDC's acquisition of 50 percent stake in Australia's Legacy Iron Ore at the next meeting of the Cabinet slated later this week, sources said.
The state-owned iron ore miner has already announced acquisition of 50 percent equity in Legacy Iron Ore, a listed entity in the Australian Stock Exchange, for AUD 18.9 million (Rs 108.31 crore at current exchange rates).
Legacy Iron Ore is endowed with more than one billion tonne of magnetite resource. This is the first acquisition by NMDC, which aims to raise its iron ore production capacity to 48 million tonnes per annum (mtpa) by 2014-15 from current installed capacity of 32 mtpa.
NMDC has been pursuing the Perth-based iron ore explorer having both thermal and coking coal and mines.
The company has been actively pursuing the acquisition of overseas strategic mineral assets with the aim of meeting its own requirements and also towards raw material security for the country's steel and fertiliser industries.
Following the acquisition of Legacy, NMDC is also eyeing more acquisitions in Brazil, Mozambique, Russia, USA and South Africa.
Company's Technical Director N K Nanda recently visited Brazil and the US to scout for opportunities for acquisition.