NMDC may float JV company with South Africa's Kopano by July
NMDC, the country's largest iron ore producer, is likely to float a joint venture firm with South Africa's Kopano Ke Matla Investment Company by July to scout minerals like iron ore and manganese in African nation.
By PTI |
NEW DELHI: NMDC, the country's largest iron ore producer, is likely to float a joint venture firm with South Africa's Kopano Ke Matla Investment Company by July to scout minerals like iron ore and manganese in African nation.
"The draft memorandum of understanding (MoU) for the proposed JV has been signed by us and send to Kopano for signing. Once we receive it, the date for joint venture agreement will be finalised," NMDC Chairman and Managing Director Rana Som told media.
Post-MoU, the two parties would work out a JV agreement, and subject to approval from both the sides, a company with 50 per cent equity participation from each would be floated. The process is likely to be completed by June-July, he added.
Kopano Ke Matla Investment Company is the investment arm of South Africa's biggest trade union federation -- the Congress of South African Trade Unions, which facilitates foreign investments in African countries.
As per rules laid down by Africa, a foreign firm willing to develop or acquire mineral assets there needs to have a tie-up with a local company.
The Indian miner has already received few proposals from South African companies for equity participation in iron ore mining ventures.
"The draft memorandum of understanding (MoU) for the proposed JV has been signed by us and send to Kopano for signing. Once we receive it, the date for joint venture agreement will be finalised," NMDC Chairman and Managing Director Rana Som told media.
Post-MoU, the two parties would work out a JV agreement, and subject to approval from both the sides, a company with 50 per cent equity participation from each would be floated. The process is likely to be completed by June-July, he added.
Kopano Ke Matla Investment Company is the investment arm of South Africa's biggest trade union federation -- the Congress of South African Trade Unions, which facilitates foreign investments in African countries.
As per rules laid down by Africa, a foreign firm willing to develop or acquire mineral assets there needs to have a tie-up with a local company.
The Indian miner has already received few proposals from South African companies for equity participation in iron ore mining ventures.
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