NMDC gets Australian board's nod for 50% stake on Legacy

HYDERABAD: Australia's Foreign Investment Review Board ( FIRB) has cleared state-run NMDC's proposal to acquire 50 per cent stake in Legacy Iron Ore.

The Indian iron ore producer and exporter had earlier said it would invest $ 18.9 million in order to acquire a 50 per cent interest in Legacy, a Perth-based iron ore explorer.

"It is pleasing to receive this notification (from FIRB), which is one further positive step completed towards formalising NMDC's investment into the company," Legacy Managing Director Sharon Heng said in a statement.

"The Board of Legacy met with NMDC officials during the week, and was encouraged that both parties could agree on a path forward to advance Legacy and increase value for all shareholders," she added.

India's largest iron ore miner is looking to lock in iron ore supplies, and had inked an MoU with Legacy on May 24 to acquire 50 per cent equity in the Australian firm.

Legacy will hold an extraordinary general meeting on December 16 to seek shareholders' approval for NMDC's proposed stake acquisition.

NMDC and Legacy will jointly develop Mt Bevan iron ore project in Western Australia. Mt Bevan is considered to hold excellent potential for iron resources that are located close to existing road, rail and port facilities, according to Legacy.