India’s largest iron ore miner NMDC Ltd is looking to close its next overseas acquisitions in Brazil and the US after buying a majority stake in Australia’s Legacy Iron Ore in September, its first overseas purchase.

Mr Rana Som CMD of NMDC on the sidelines of a conference said that “We are working on certain acquisitions. One of them is Greystone (Greystone Mineracao do Brasil in Bahia, Brazil). Our scrutiny is on and little snags here and there are being sorted. In a few days there should be a decision on it.”

Mr Som said that the other target is a coking coal mine in the US, for which NMDC wants to make phased payments.

Mr Som said that both the acquisitions are for 100% ownership and will be funded through internal accruals. Another company executive said NMDC will use its cash reserve of INR 19,000 crore for the purchases.

Mr Som said both the assets are small; the mine in the US has an annual production of less than half a million tonnes.

Mr Som said the US coking coal mine is already into production but the Australian iron ore mine needs to be developed. He added that “It is okay if iron ore is produced after four-five years when the shortages hit us, but we want coking coal now.”

NMDC acquired a 50% stake in Australia’s Legacy for AUD 18.89 million (INR 90 crore), surprising sceptics and giving itself an avenue for growth as new mines are getting harder to develop at home owing to issues surrounding land acquisition, displacement of locals and environmental clearances.

India produces more than 200 million tonne of iron ore a year and about 550 million tonne of coal for its power, steel and cement plants, but the country’s ambitious growth projections mean it needs more of the two commodities.

(Sourced from livemint.com)