Business Line reported that NMDC Ltd is banking on Perth based Legacy Iron Ore to acquire more coal mines in different parts of the world.
The public sector miner bought 50%stake in Legacy Iron Ore that is exploring and developing mineral projects in Western Australia and Queensland.
Mr CS Verma CMD of NMDC said that"Times are very good for acquisition.Through Legacy,we are looking at some other mines too.We have signed MoUs in Brazil and Africa."
Mr Verma said that Legacy is being used as a vehicle to scout for assets globally.Legacy itself is now in the process of carrying out a due diligence of acquiring several other mines.
He said that the Australian company is engaged in mining of iron ore,manganese,coal,gold,and base metals.Currently,the firm has reserves of about 1.6 billion tonnes and has sealed MoUs in three to four places.
However,Mr Verma did not offer any comments on the timelines when these acquisitions may be completed.He said that"I cannot say on the timelines.There is a very thin line between yes or no.We want to put our money in overseas acquisition very cautiously."
The valuations of iron ore assets have not seen a downtrend like the coal mines.He added that"The dip in the valuation of coal assets is sharper than iron ore assets.This is because coal prices have gone up to peak level of USD 350 for every tonne.Today,they are hovering around USD 150 a tonne to USD 160 a tonne.But,iron ore prices have clocked peak levels of USD 189 to USD 190 each tonne,which are today ranging around USD 125 per tonne."
He added that NMDC targets to increase its domestic output from current 32 million tonnes per annum to 48 million tonnes per annum in the next three to four years.A chunk of its planned capital expenditure of INR 30,000 crore during the 12{+t}{+h}Five Year Plan would go towards enhancement of production.
He further added that"Iron ore is plenty in the country.Domestic production is more than the demand and we are exporting it.We will have to see the economics if we need to bring them to India or sell as merchant in the international country.There are markets in the countries such as Japan."
