Australia’s Foreign Investment Review Board has cleared state run NMDC’s proposal to acquire 50% stake in Legacy Iron Ore.

Ms Sharon Heng MD of Legacy Iron said that “It is pleasing to receive this notification (from FIRB), which is one further positive step completed towards formalizing NMDC’s investment into the company.”

She added that “The Board of Legacy met with NMDC officials during the week, and was encouraged that both parties could agree on a path forward to advance Legacy and increase value for all shareholders.”

India’s largest iron ore miner is looking to lock in iron ore supplies, and had inked a MoU with Legacy on May 24 to acquire 50% equity in the Australian firm. The Indian iron ore producer and exporter had earlier said it would invest USD 18.9 million in order to acquire a 50% interest in Legacy.

NMDC and Legacy will jointly develop Mt Bevan iron ore project in Western Australia. Mt Bevan is considered to hold excellent potential for iron resources that are located close to existing road, rail and port facilities, according to Legacy.

(Sourced from BL)