New Delhi: India's largest iron ore miner NMDC Ltd is exploring opportunities to buy two assets overseas in the current financial year 2012-13, including a 26% equity stake in Brazilian iron ore company Amplus for around $10-$15 million, acting Chairman N K Nanda said.
"In this financial year, we are finalizing two acquisitions. One is in Brazil that has a resource of one billion tonnes, for which the due diligence is almost over and other is in Mozambique, where we are getting 15% stake," he told reporters on the sidelines of Confederation of Indian Industry (CII) steel summit.
The Indian state-run iron ore major has already inked a memorandum of understanding (MoU) with the Nagpur-based Sunflag Iron and Steel Co Ltd to pick up 15% equity stake in the Mozambique asset, Nanda said, adding the company is expected to take a final decision on the Brazilian buyout in its board meet scheduled next month.
"By July, both agreements will be signed. For Brazilian property, due diligence is over and we will finalize it in next Board meeting, to be held in May," he told reporters.
The firm has entered into an exclusivity agreement (memorandum of understanding) with the Brazilian iron ore firm Amplus.
The MoU seeks investment by NMDC in exploration of Amplus' iron ore reserves and provide it technical expertise. The Brazilian firm has offered a 26% stake to NMDC against this for $10-$15 million, with an option to raise the stake holding in the firm to 50%, Nanda had said earlier.
Furthermore, the company has also started due diligence to acquire a coking coal mine in Russia, while the due-diligence of its proposed 50% equity stake buy in Australia's phosphate mines is also underway.
Wonarah phosphate deposits in Australia are estimated to have a reserve of 1.26 billion tonnes with 12% phosphate and believed to be one of the largest under-developed phosphate reserves in the continent.
Earlier January, NMDC acquired 50% equity stake in Legacy Iron for A$18.89 million (over Rs 1 billion).
NMDC, which has earmarked Rs 40 billion towards capital expenditure in the current financial year 2012-13, has set aside Rs 12 billion to acquire assets overseas, Nanda said, adding the company's focus is on low-cost acquisitions.
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