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| NMDC keen on 10% equity in Aussie mining firm |
| Press Trust of India / Kolkata Sep 08, 2010, 17:37 IST |
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 State-run miner NMDC Ltd is keen on picking up 10 per cent equity in Australian mining firm Riversdale Mining, in which Tata Steel also has 19.38 per cent stakeholding, a top official of the company said today.
"We are interested in picking up equity in Riversdale," NMDC chairman and managing director Rana Som told reporters on the sidelines of CII function here today.
Asked how much stake was NMDC eyeing in Riversdale, he indicated that it would be 10 per cent.
Tata Steel had joined hands with Riversdale for developing mining activity in Mozambique.
Som said that NMDC had also tied up with Tata Steel for jointly developing assets in that country.
He said that NMDC was scouting for coking coal assets abroad to secure the raw material requirement for the steel industry in the country. Incidentally, basically a mining firm, NMDC had announced plans to set up two steel plants as well.
Som said that NMDC had also for a JV company Copano NMDC Minerals Limited to acquire coal and coking coal assets in South Africa and Zimbabwe.
NMDC was also starting the due diligence of Kolmar mines in Russia.
Asked about NMDC's focus areas, Som said that the company would be primarily dealing with iron ore, coal, rock phosphate and potash.
Asked about the status of the JV among NMDC, Coal India and West Bengal Mineral Trading Corporation Limited, Som said that the three companies had explained their position to the officials in Delhi.
"Hopefully it will be done quickly and work will start as soon as we get the coal block," he said.
The JV is eyeing a block in Birbhum district in West Bengal, which has initial coal reserves of two billion tonnes.
In the project, NMDC would provide technology for hard rock mining.
Som said that production of iron ore is restricted due to evacuation problems.
Proper railway infrastructure is needed to evacuate the produce, he said, adding that NMDC has already committed funds to the railways.
About the steel plant in Karnataka, he said that it would commission in two years time.
Regarding pricing of iron ore, Som said that NMDC had evolved a unique model so as to partly insulate the customers from internal price fluctuations.
This particular model, which was made effective from April 1, 2010, would be subject to review after one year, he said.
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