Three steel PSUs looking to buy iron ore assets in Brazil
26 Dec 2012 5:37 AM IST
Three state-run firms, Rashtriya Ispat Nigam, NMDC and MOIL, under the Steel Ministry are looking to acquire iron ore assets in Brazil, the world’s second largest exporter of the steel-making raw material.
NMDC has already started due diligence in a couple of mines in the Amapa province. The Steel Ministry has initiated talks with the Brazilian authority for identifying potential targets for the other two for acquisition, a source said.
The source said all three of them are eager to have their presence in the mineral-rich Latin American nation, be it by way of acquiring stake in a company having operative mine or outrightly buying a yet-to-be-developed mine.
A delegation, headed by Steel Secretary D R S Chaudhary visited Brazil in November to scout for mines and investment opportunities by Indian companies in mineral sector.
Chaudhury was accompanied by NMDC’s Technical Director N K Nanda and MOIL’s Chairman and Managing Director G P Kundargi, among others.
‘NMDC has the ambition to become a leading global player in the iron ore sector. Hence, it needs to acquire mines in various parts of the world,’ a senior Steel Ministry official said.
The company is also increasing capacity to 48 million tonnes per annum (MTPA) by 2014-15 from the current installed capacity of 32 MTPA. RINL, which is on the verge of increasing its steel- making capacity to 6.3 MTPA from the existing 2.9 MTPA, operates its plant without any captive mine.
NMDC has already started due diligence in a couple of mines in the Amapa province. The Steel Ministry has initiated talks with the Brazilian authority for identifying potential targets for the other two for acquisition, a source said.
The source said all three of them are eager to have their presence in the mineral-rich Latin American nation, be it by way of acquiring stake in a company having operative mine or outrightly buying a yet-to-be-developed mine.
A delegation, headed by Steel Secretary D R S Chaudhary visited Brazil in November to scout for mines and investment opportunities by Indian companies in mineral sector.
Chaudhury was accompanied by NMDC’s Technical Director N K Nanda and MOIL’s Chairman and Managing Director G P Kundargi, among others.
‘NMDC has the ambition to become a leading global player in the iron ore sector. Hence, it needs to acquire mines in various parts of the world,’ a senior Steel Ministry official said.
The company is also increasing capacity to 48 million tonnes per annum (MTPA) by 2014-15 from the current installed capacity of 32 MTPA. RINL, which is on the verge of increasing its steel- making capacity to 6.3 MTPA from the existing 2.9 MTPA, operates its plant without any captive mine.
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