India’s largest iron ore producer, NMDC, will decide on its proposed joint venture with ArcelorMittal, early next month.
The joint venture would be formed for development of iron ore mines at Senegal having reserves of around 750 million tonnes. Initially, production from the mines could be to the tune of two million tonnes, annually.
“We are working with a co-operative approach,” said Rana Som, chairman and managing director, NMDC, at an interactive session organised by the Merchants’ Chamber of Commerce.
NMDC was working with ArcelorMittal and Tata Steel on separate projects, which included looking at global asset development.
NMDC was in the process of realising growth through organic and inorganic routes. As part of the organic growth, production of iron ore would be increased from the current level of 27-28 million tonnes to 51 million tonnes by 2013-2014.
On the acquisition front, the public sector miner has identified two assets in Australia and one in Africa.
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One of the assets in Australia was Atlas Iron’s Ridley project, where NMDC was looking at a minority stake. “Atlas is planning to divest 70 per cent stake in the project,” said Som.
Apart from the minerals and mines space, NMDC has lined up forward integration plans. “The first bricks for the three million tonne steel plant in Chhattisgarh will be laid in December,” said Som. The investment in the project was to the tune of 15,525 crore.
The other investment projects included two pellet plants at a combined cost of Rs 1,400 crore. Also, NMDC would be constructing a 430-km pipeline having a capacity of 12 million tonnes. The project would be completed in 20-22 months’ time and would cost Rs 3,000 crore.
For the Karnataka steel plant, NMDC may partner with Japanese companies. “The objective is to bring in new technology,” explained Som. NMDC is in talks with Japanese Steel Mills, including Nippon Steel.