NMDC buys 50% in Australia's Legacy Iron Ore for Rs 92 crore

KOLKATA: State-run NMDC Ltd will buy 50% stake in Australia’s Legacy Iron Ore for Rs 92 crore, marking the navratna company’s first overseas foray and one that will give it access to key mineral resources down under.

In a filing to the Australian Securities Exchange, Legacy Iron said its board has agreed to the NMDC proposal though the deal would be subject to regulatory and shareholder approval. Legacy shareholders are likely to meet in November to approve the deal, which breaks the jinx of PSUs pitching for assets overseas but losing out to rivals in the final lap.

“This is only an initial investment into Legacy and NMDC's involvement will depend on various projects that may be taken up later,” NMDC company secretary Kumar Raghavan said.

On September 14, NMDC had put in a binding bid for acquiring a 50% stake in Legacy, which holds prospective iron ore tenements in both the central Yilgarn and Pilbara areas of Western Australia. It had first signed a memorandum of understanding with the Perth-based company on March 24.