December 03, 2008

NMDC and New Millennium Capital in talks for iron ore project

It is reported that National Mineral Development Corporation is in talks with Canada’s New Millennium Capital Corporation Limited for a USD 3.5 billion project to develop one of the world’s largest undeveloped low grade iron ore deposits. NMDC is one of several companies competing for the project.

The Millennium Iron Ore Range, in which New Millennium holds a majority stake, has over 9 billion tonnes of iron ore reserves. Apart from developing the deposits, the project includes building a pellet plant and a 700 kilometer long slurry pipeline. It has floated a global tender for a 50:50 JV to expand and develop facilities in current or new mineral properties overseas.

Mr Rana Som CMD of NMDC said that a bid would be submitted by mid April 2008. Mr Som said that though the gestation period for the Canadian project was a 5 and a half to 6 years, it could help bridge the gap. He added that "Once our reserves are exhausted, the Millennium Iron Ore Range could last another 40 to 50 years."