Wall Street Journal reported in September end that NMDC Ltd has signed an initial agreement with Sunflag Iron & Steel Co to acquire a 26% stake in a Mozambique coal project.

As per report, NMDC will buy an 11% stake in Sunflag's coal project, which has an estimated reserve of 450 million tonnes of coking and thermal coal. The coal mine has an annual production capacity of about 5 million tonnes.

Mr Rana Som chairman of NMDC had said that the agreement with Sunflag was signed recently.

He said “We expect to get coal from Mozambique to India in the next three years when the production is expected to begin.”

The pact with Sunflag forms part of NMDC's plan to invest in coking coal and iron ore assets overseas to propel its iron ore and upcoming steel projects.

(Sourced from online.wsj.com)