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SAIL or RINL for 50% of NMDC's Chattisgarh steel plant?

Last Updated: Sunday, June 9, 2013 - 14:09

Kolkata: Steel Authority of India (SAIL) and Rastriya Inspat Nigam Ltd are the only two bidders for iron-ore minor NMDC's 50 percent stake in the upcoming three million tonne per annum steel plant in Chhattisgarh.

"SAIL and RINL responded to the expression of interest floated by NMDC," C S Verma, the acting chief of NMDC, said during a short visit here.

Verma, who is CMD of SAIL, has been given additional charge of NMDC Chairman till the appointment of a regular CMD.

NMDC was looking at garnering Rs 8,000-10,000 crore from sale of stake to a strategic partner.

Since NMDC was currently a pure-play miner, it was felt necessary to bring in a partner to produce steel.

NMDC would supply iron ore to the project, its maiden venture in steel-making, from its existing mines at nearby Bailadila while coking coal, also a key raw material for steel making, was planned to be imported.

Meanwhile, Verma said more capex was planned for Legacy Iron Ore in Australia where it had acquired 50 percent stake.

NMDC had acquired 49.61 percent stake in Legacy Iron Ore for USD 19 million in 2011.

But the company had not taken any view on moving ahead with South african coal assets and other minerals.

Four years after entering into an agreement with South Africa's Kopano for scouting mineral assets, NMDC was examining two proposals for acquiring coal mines in the African country.


First Published: Sunday, June 9, 2013 - 14:09
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