MUMBAI: Indian state-run iron ore miner NMDC is in talks to acquire controlling stake in mining firm Greystone Mineracao do Brasil for $1 billion, the Economic Times said, quoting two sources involved in the negotiations.
NMDC is currently doing a technical, financial and legal due diligence of the iron ore mines which have reserves of 260 million tonnes, the report said.
The cost of $1 billion will include expenses incurred to build infrastructure to develop the mines, the report said.
NMDC's officials could not immediately be reached for comment.
The target company owns 6 exploratory licences in the state of Bahia in Brazil. Greystone is also developing a $3 billion iron ore project in neighbouring Uruguay, for which, it is seeking a partner, the report added.
NMDC, which accounts for 15 percent of India's iron ore production, has been scouting for iron ore mines overseas to cater to the needs of international buyers. Last month, it struck a deal with Australian miner Legacy Iron Ore to buy a 50 percent stake.
Shares of NMDC, which is valued at $23.6 billion, closed 1.51 percent higher on Friday in a strong Mumbai market.
Copyright Reuters, 2011
Comments
Comments are closed for this article.