It is reported that Mineral major NMDC has zeroed in on a ‘small' coking coal mine in Russia. The company is expected to seek Board approval for the targeted acquisition in the next 10-12 days.

Mr Rana Som CMD told newspersons on the sidelines of a seminar organized by the Mining, Geological and Metallurgical Institute of India said “It's a small asset of 70 million tonne. Our team has already been to Russia to take stock of the asset. We are expecting to complete the due diligence and approach the Board in this regard in the next 10-12 days.”

On the structure of the proposed acquisition he said that the company prefers to acquire operating interest. Mr Som said “We will try to acquire maximum interest in the asset. However, eventually, we may dilute part of the holding to any other party to share the investment.”

Though the due diligence on another coal asset in Alabama in the US is nearing completion, Mr Som indicated that NMDC was not planning to go ahead to acquire the same at this juncture. He said “We have no plans to approach the board with this acquisition proposal now.”

The company will also enter into a firm pact with Russian steel major Severstal for building a two million tonne steel plant in Karnataka in October. The company has already entered into MoU with the Russian company in this regard. As per the memorandum, NMDC would supply iron ore to the steel joint venture while Severstal will transfer its coking coal asset in Russia in favor of the venture.

(Sourced from www.thehindubusinessline.com)