MMTC, NMDC plan to look for diamond, gold overseas

MMTC, a public sector trading company, is planning to join hands with NMDC, also a government-owned enterprise operating in the exploration of a wide range of minerals, to bid for global gold and diamond mines.

Asheesh Majumdar, chief general manager, MMTC said, the company was exploring the possibility of bidding for gold mines in Kazakhstan and Uzbekistan. For diamond mines, there could be joint bids in Angola and Botswana.

Merits mention, NMDC operates the only mechanized diamond mine in the country producing around 80,000 carats at Panna in Madhya Pradesh while MMTC happens to be the largest importer of gold in India.

MMTC has been in the business of precious metals since early 1980s.

Majumdar was speaking on the sidelines of a press conference to announce the festival of gold to be held in Kolkata for the first time.

Mines apart, MMTC has lined up major plans, which range from setting gold medallion refinery to retail.

MMTC would be setting up a gold medallion manufacturing facility with foreign participation.

P K Das, general manager (eastern zone), MMTC said, two-three foreign companies had been shortlisted for the project.

MMTC would have a minority stake, possibly 26 per cent and the foreign partner around 24 per cent. The balance would be held by banks and financial institutions, who had also evinced interest in the project.

MMTC would have a board meeting end of the month to finalise the project and then seek approval from the Union ministry of commerce and industry.

Das said, the company would also go for an initial public offering (IPO). The investment including the gold refinery was likely to be in the region of Rs 100 crore.

He pointed out, the idea of setting up a medallion project stemmed from the realization that medallion was being considered as an investment option. "Banks are also importing medallions," he said.

A retail venture from MMTC was also in the offing. Two-three Indian partners had been shortlisted for the retail venture. The venture would roll out 15 retail outlets in the first year of operations. MMTC currently has two retail outlets in Delhi.

MMTC is also planning to set up a jewellery special economic zone (SEZ), spread across 75-100 acres. Das said, both Karnataka government and the West Bengal government had been approached for the land.

MMTC has set up the infrastructure for dedicated assaying and hallmarking facility at Manikanchan SEZ in Kolkata.

"The 1,200 square feet state-of-the-art MMTC hallmarking unit would be functional by the end of this month and have a capacity to assay and hallmark 200,000 items per annum," said Das.

MMTC is a five star trading house with a turnover of Rs 23,302 crore. MMTC also posted the highest net profit in its history at Rs 127 crore during 2006-07.