NMDC Limited : NMDC Chairman : Expect To Buy Stakes In 2 Overseas Mines This Fiscal Year
04/30/2012| 06:33am US/Eastern
NMDC Ltd. (526371.BY), India's largest iron ore company by output, expects to buy stakes in two overseas mines this financial year that began April 1, its acting chairman said Monday.
N.K. Nanda told Dow Jones Newswires that the company is conducting due diligence on a 1.0 million tons a year iron ore mine in Brazil and is close to acquiring a 15% stake in Sunflag Iron & Steel Co.'s (500404.BY) coking coal project in Mozambique. NMDC expects to conclude the deals this year, he said.
The company has earmarked INR12 billion, out of a total investment plan of INR46.55 billion this fiscal year, for overseas acquisitions, he said.
He also said that the company expects to export 2.0 million tons of iron ore this year. NMDC didn't export any iron ore last fiscal year as it couldn't finalize any deal.
"We have signed long-term iron ore export agreements with Japanese and South Korean steel mills and plan to start shipments in July," he said.
The company plans to produce and sell 30 million tons in the local market this fiscal year.
-By Prasenjit Bhattacharya, Dow Jones Newswires; +91-11-4356-3304; email@example.com