NMDC in talks to buy Aussie mine

State-owned National Minerals Development Corporation (NMDC) on Sunday said it is in discussion with the west Australian government to acquire an iron ore mine for the first time outside the country. The company will also be looking for an Australian joint venture partner for the project.

Rana Som, chairman and managing director, NMDC, met western Australia’s minister for regional development Doug Cunningham in Delhi recently and expressed the company’s intention to acquire an iron ore mine. When contacted, Som said, “Talks are at an initial stage and I have requested the minister that he has to help us out on various issues, like getting a right partner and so on”.

Som said NMDC would like to have a ‘hand-holding’ partner, be it a public or private player, to invest in Western Australia as its experience comes handy on several matters.
Asked whether NMDC would like to have majority stake in the venture, Som said, “These issues are to be discussed later. So many things are so unknown today.”

“Investment in a greenfield project in western Australia could be around A$ 1 billion, but it could increase depending upon the size and the reserves of the mine,” a source said.
In 2007-08, iron ore was the largest export item for Western Australia estimated at A$20 billion or 29.1% of the total exports.