NMDC scouts for mines in Mozambique, South Africa
By IANSWednesday, September 8, 2010
KOLKATA - State-owned National Mineral Development Corporation (NMDC) is scouting for mines in South Africa and Mozambique, a top company official said here Wednesday.
“We have a tie-up with Tata Steel for jointly acquiring foreign assets. They are doing something in Mozambique and we also would like to participate with them, so that we can acquire coking coal asset in Mozambique in association with Tata Steel,” Rana Som, chairman-cum-managing director, told reporters on the sidelines of a seminar organised by Confederation of Indian Industry.
“In South Africa we have formed a joint venture (JV) company now. Earlier we had a MoU (Memorandum of Understanding), we have now converted that MoU into a joint-venture company. That JV company is named as Kopano-NMDC Minerals Ltd.”
He said the JV was signed Sep 1 in Johannesburg and the purpose of that JV is to acquire coal and coking coal assets not only in South Africa but also in neighbouring Zimbabwe.
When told that South Africa and Zimbabwe are not known to have very large reserve of coking coal, he said: “In fact, in Zimbabwe there are mines, which will have 20 percent coking coal that is also semi-soft coking coal. But this coking coal has also got some value for the steel industry in India, that can always be blended, beneficiated by the steel industry.”
Som said NMDC has decided to confine its interest in iron ore, coal (including coking coal), rock phosphate and potash.
Talking about Kolmar mines in Russia, he said: “There also we are starting due diligence. More than 100 million tonnes of coking coal is available there. We are open to share properties with local or other partners. There are four mines, out of which one is working.”
Regarding picking up stake in Riversdale Mining Limited, he said: “We are trying for 10 percent.”
About its plans of coal mining with Coal India Ltd (CIL) in the Birbhum district of West Bengal, Som said: “I am quite hopeful it will happen very quickly. We had a meeting sometime past with the coal minister and secretary, and Coal India chairman. They said they will actively consider this.”
NMDC plans to explore the Deocha Pachami coal block in Birbhum.
