August 7, 2008
August 7th (Steel Guru) – Money control.com reported that state owned mining firm NMDC is in talks with Rio Tinto for a 50:50 JV which would bid for global mining assets.
Mr Rana Som CMD of NMDC said that “We are in discussion for a 50:50 joint venture. Rio Tinto was one of the international parties to evince interest in establishing a joint venture when we floated a tender.”
Earlier this year, as many as 35 companies had expressed interest in NMDC’s global tender for floating a joint venture for mining activities. Out of which six were foreign companies.
A Rio Tinto spokesperson said that “Rio Tinto does not comment on market rumor or speculation.”
As per report, the JV besides acquisition of global assets, the partnership could be extended to new assets in the domestic market also. Industry sources said that the partnership could enhance the global mining giant Rio Tinto’s presence in the domestic market significantly.
Like Rio Tinto, NMDC is also involved in the exploration and mining of a wide range of minerals. Also, in the domestic market, NMDC has filed mining applications for iron ore and coal in almost all the mineral rich states. If the discussions with Rio Tinto get through, it would be the domestic miner’s second joint venture company.
Mr Som said that the two joint venture companies would bid for different assets in different countries. NMDC and the Spice Energy group have formed a joint working group, which is conducting due diligence of some assets, including two iron ore deposits in Armenia, which may require an investment of USD 500 million.
July 29, 2008
July 29th (Steel Guru) – BL reported that the JV between NMDC and Chhattisgarh Mineral Development Corporation has decided to speed up work on Deposit Number 13 of the Bailadila mines in Chhattisgarh.
According to the report, the deposit has around 300 million tonnes per annum of high grade iron ore and the quantity of minable ore is expected to increase as the exploration starts. Around INR 1,500 crore will be invested in the next three years and the debt equity ratio for the proposed investment will be 2:1.
As per the report the project will have an annual capacity of 10 million tonnes per annum and the production is expected to start within three years.
July 28, 2008
July 28th (AOL News Canada) – Labrador’s Innu Nation has signed an agreement with the company planning to resume mining on long-dormant iron deposits near the Quebec-Labrador boundary.
Labrador Iron Mines plans to extract about three million tonnes each year, as early as 2009, from a site near Schefferville, Que.
The Iron Ore Company of Canada, which operates a large mine in Labrador City, shut down the site in 1982. Soaring steel prices have made the once-abandoned mine viable again.
Labrador Iron Mines reached a deal this spring with Innu in Quebec.
Mark Nui, grand chief of the Innu Nation, would not say what the company’s deal – which involves money, business contracts and jobs – is worth to Labrador’s 2,000 Innu.
Nui noted, though, that the deal is the first time his people will benefit from mining in western Labrador.
“The government has collected revenues out of it through taxes and we haven’t benefited. We’ve had zero,” Nui told CBC News.
“This business of being passive observers to what’s happening on our lands has to stop.”
Nui said the Innu Nation will insist that mining exploration or exploration work will need to come through the Innu Nation.
Labrador Iron Mines registered the project with the Newfoundland and Labrador government in May.
The proposal is now before Environment Minister Charlene Johnson.
July 5, 2008
July 5th (The Statement) – State-run National Mineral Development Corporation (NMDC) has formed a joint venture company with Chhattisgarh Mineral Development Corporation (CMDC) to set up a Rs 1,500 crore mining project in the state. The joint venture company, in which NMDC holds 51 per cent and the rest by CMDC, was registered last month, a spokesperson of NMDC said. The official said the two partners would now prepare a road-map for going ahead with the proposed mining project, which would exploit deposit number 13 of the Bailadila mines in Chhattisgarh. The project would have an annual capacity of 10 MT. According to estimates of NMDC, which carried out exploration way back in 1994, the deposit number 13 has an estimated iron ore reserves of about 320 million tons with average ferrous content of 67 per cent.
NMDC had inked a memorandum of understanding with CMDC in July last year.
June 25, 2008
June 25th (MyIris) – NMDC has formed a new joint venture (JV) company with Chhattisgarh Mineral Development Corporation (CMDC) for the development of Bailadila Iron Ore, Chhattisgarh. The new JV company has been incorporated as `NMDC-CMDC ` with an initial share ratio percentage of 51:49, under the companies act, 1956.
The company is involved in the exploration of wide range of minerals including iron ore, copper, rock phosphate, lime stone, dolomite, gypsum, bentonite, magnesite, diamond, tin, tungsten, graphite, beach sands etc.
Shares of the company declined Rs 13.4, or 4.2%, to trade at Rs 305.95. The total volume of shares traded was 44,533 at the BSE (1.55 p.m., Wednesday).