Wednesday, July 9, 2008

NMDC May Acquire Armenia Iron Ore Mines

India’s state-run National Mineral Development Corp.'s (NMDC) proposed joint venture with Spice Minerals and Metals may acquire two iron-ore deposits in Armenia with an investment of $500 million (21.73 billion rupees), the Business Standard reported quoting NMDC's chairman and managing director, Rana Som.

The report quoted Som as saying, 'Two iron ore deposits had been identified with reserves of 300 million tonnes and 75 million tonnes and the final discussion over the acquisition will be held by the weekend.'

The investment will be equally shared between NMDC and its joint venture partner, the paper added.

'We will make pellets and bring them to India through the Poti port in Georgia on the Black Sea. The project also has rail links,' the report quoted Som as saying.

The project could help bridge an anticipated shortage in the light of India's target of a steel capacity of 300 million tonnes by 2020, which would require iron ore reserves of about 14 billion tonnes over 30 years.

NMDC supplies iron ore to Japan's Nippon Steel and JFE Steel Corp. as well as local companies such as JSW Steel, Essar Steel, Ispat Industries.

Source: Hemscott

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