NMDC to commence mining in Australia in 1-2 years

An interesting article on Economic Times dated 18/09/2014

http://m.economictimes.com/industry...stralia-in-1-2-years/articleshow/42830247.cms



BANGALORE: NMDC, country's biggest iron ore producer which had acquired an additional 30 per cent stake in Australian firm Legacy Iron Ore, today said it will commence mining there in a year or two.

"The company has purchased Legacy Iron Ore Limited, an Australian company. We are doing further explorations. Probably, in a year or two, we will be mining there," NMDC Chairman and Managing Director Narendra Kothari told reporters here.

With the 30 per cent additional stake in the Australian company, NMDC had acquired 48.8 per cent stake in the Australian firm in 2011, its first overseas acquisition.

"It is an exploration company. Big assets are there. More than a billion tonne of major assets - good quality iron ore is there," he said.

Replying to a query whether NMDC would use the expertise of the Australian company, Kothari said both the companies would use their expertise for exploration anywhere.

"We have expertise and they also. Combined together, we both will use the expertise for exploration anywhere," he added.

Compared production of 30 million tonnes of iron ore in 2013-14, NMDC has set a target of increasing production by at least 10 per cent to 32-33 MT in 2014-15.

"I am committing at least 32 million tonnes this year even though our intention is to produce more than that. Next two years, we intend to produce 36-37 million tonnes and our aim is to produce 50 million tonnes by 2018-19 and even touch 100 million tonnes by 2024-25," Kothari said.

NMDC in 2013-14 had produced nine million tonnes in Karnataka and aims to increase its production to 10.5 million tonnes or more in FY15 at their Donimalai and Kumraswamy mines, Kothari said.

"The Supreme Court has permitted us to produce 12 million tonnes per annum in Karnataka. But there were some issues and we have sorted them out like mechanisation. At least next year, we will reach 12 million tonnes in Karnataka," he said.

Kothari said that irrespective of prices of iron ore falling in the international market, NMDC will not reduce its prices in the domestic market.