Canada based mining consulting engineering firm Wardrop aims to get Indian clients keen on acquiring assets overseas, as the global downturn has eroded value of deposits in mines across the globe.
"This is an opportune time for companies looking for buying overseas assets as the prices of base metals have fallen significantly in the last few months, down by almost 60 to 70 per cent in case of some commodities", Ron Hall, vice-president for international development of Wardrop, said.
The valuation of a deposit is done on the basis of the average price for three years. Wardrop would conventionally work in the areas of engineering consultancy in technical and project management for mining companies.
It is now keen to work with companies in India and China in due-dilligence and advisory functions when going for acquisitions abroad. "There is a serious fund crunch in the West, and typically such assets are bought there through equity financing. India and China are thus now in our scheme of things. We are already in talks with two or three such Indian companies who are keen to buy uranium minesa abroad", Hall explained.
Ravi Kastia, managing director and chief executive officer of Essel Mining & Industries of the Aditya Birla group, said the company was in the look out for buying base metal assets in the overseas markets that have been revalued by the downturn.
This apart, international mining technology companies were now keen to ramp up their India business banking on the growing coal and iron ore sectors in the country. Speaking at the global mining summit organised by the Confederation of Indian Industry (CII), Simon Johnson, regional director of the Western Australia Trade Office-India, said that Australian technology companies are already working here with Indian mining majors and they expected a significant surge in business in the coming years.
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