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.
May 30, 2008
May 30 (Moneycontrol) – The NMDC limited (NMDC) – a Government of India Enterprise and Spice Minerals & Metals; an initiative of the Spice Energy group have signed a Memorandum of Understanding today at Hyderabad.
This MoU is one of the few private partnership entered by the NMDC which chose Spice Minerals & Metals from 35 other reputed national and international companies to create a JV in 50:50 partnership. The JV will be called NMDC Spice International.
Mr. Ravi Chilukuri, CEO, Spice Energy said, “We are extremely happy & honoured to join hands with an enterprise of such high national repute as NMDC. Leveraging from NMDC’s expertise and skills in the minerals and mining sector combined with Spice Energy’s global reach and logistical prowess; we aim to penetrate the international markets and make a mark for us on the global map.”
The signing of this MoU also marks the beginning of a long term a strategic partnership for planning, acquisition, development and management of metal & mineral projects outside India, executable through specific Joint Ventures. The first project under consideration is in Armenia where mining assets in Iron Ore are proposed to be developed by both the Companies, working in synergy.
This MoU is in line with the emerging trend of public-private partnership (PPP), which enjoys support from the Govt of India. This approach is particularly relevant to acquisition and development of new mining concessions overseas, wherein Indian companies are pitted against very established foreign entities.