Monday, March 30, 2009

NMDC, COSATU Arm To Sign African Mineral Scouting JV

Indian state-owned mining giant NMDC would soon join hands with South Africa's Kopanao Ke Metla Investment Company for acquiring coal, iron ore
and manganese properties in African nations.

"(The) NMDC board has approved the tie-up with Kopanao. We have apprised them of our decision and are waiting for a reply," NMDC Chairman and Managing Director Rana Som told reporters.

Kopanao Ke Metla Investment Company is the investment arm of South Africa's biggest trade union federation -- the Congress of South African Trade Unions, which facilitates foreign investments in African countries.

After an initial business working agreement with the African entity, NMDC is looking at floating a joint venture company with it to look for mineral properties.

Asked about the time-frame by which the two agreements are likely to be signed, Som said it would depend on the response from the African company. Sources, however, said the business working deal is likely to be signed in just over a week's time.

NMDC has already received a couple of proposals from South African companies to form joint ventures for taking up iron ore mining.

Early this year, the Indian miner had announced applying brakes on acquisition of overseas mining assets due to the global economic slowdown, but has been considering proposals in Africa, Armenia, Australia and Brazil.

Source: Economic Times

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