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State-run NMDC today said it will soon clinch deals for overseas iron ore and coal assets, as talks are progressing fast with companies in the US, Russia, Australia and Mozambique.
The mining giant is eyeing acquisitions to expand its capacity and ensure raw material security for its upcoming steel mills in Chhattisgarh and Karnataka.
“We have shortlisted four-five assets in the US, Russia, Australia and Mozambique. Due diligence is on in respect of their technical and financial details. If all goes according to plan, we hope to acquire coal and iron ore assets soon,” the NMDC Director (Finance), Mr S. Thiagarajan, told PTI.
Sources said the deals could value about $500 million. However, Mr Thiagarajan said the value of the assets was still to be assessed as the talks were at various levels.
In February this year, the NMDC Chairman, Mr Rana Som, said the navaratna firm was targeting six assets: three iron ore and three coal mines in Australia, Mozambique and Albania and had almost finalised deals for two. NMDC has already forayed into steel-making and is setting up a 3-million tonnes steel plant in Chhattisgarh. It plans to build the Rs 15,500-crore mill by 2014 for which it requires raw material security. Besides, it has a joint venture with Russia's Severstal to set up an initial two million tonnes per annum (MTPA) steel plant in Karnataka at a likely investment of Rs 25,000 crore, which can further be expanded to 5 MTPA.
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