BHP World Explorations Inc's plans to set up a wholly owned subsidiary in India has hit a roadblock with public sector Hindustan Zinc Ltd (HZL) writing to the government that the multinational company (MNC) should be allowed to set up the proposed fully owned venture only if it gives the commitment that it will not undertake any prospecting and exploration activities in Rajasthan.
HZL, which has a 50:50 joint venture with BHP, is understood to have insisted on the MNC getting a no-objection from it before given approval for the proposed fully owned arm. The proposal of BHP World Explorations Inc, the Canada-based affiliate of the diversified Australian giant BHP, is for undertaking exploration and mining of various metals and minerals except precious metals and iron ore.
The 50:50 joint venture between HZL and BHP Minerals International is for prospecting of base metals such as lead, zinc, copper and aluminium. According to sources, the subsidiary plan is part of the Australian $24 billion turnover mining major's ambitious expansion plans in India, aimed at becoming a leading player in the prospecting and mining business in the country. HZL officials, however, felt that the move by BHP to set up a fully-owned arm is a clear move to go on its own here, at the cost of its existing joint venture in the country. "Since BHP already had the necessary technology they were attempting to go it alone in the market," a senior HZL official said.
