NMDC plans to acquire of iron ore and coal mines
Sitting on a Rs 6,000 crore cash reserve, state-owned National Mineral Development Corporation (NMDC) has started scouting for iron ore and coal mines for acquisition, both in India and overseas.
By PTI |
MUMBAI: Sitting on a Rs 6,000 crore cash reserve, state-owned National Mineral Development Corporation (NMDC) has started scouting for iron ore and coal mines for acquisition, both in India and overseas.
"We are on the look out for iron ore mines for acquisition in Canada and West Africa. At the same time, we are looking for some coal mines in Australia also," V K Jain, Director (Production), NMDC said here today.
Jain said that the company has already sent its representative in Canada, but when asked how close was the acquisition, he said, "it will take time".
Domestically also the company intends to acquire iron ore mines in Karnataka, Jharkhand and Chhatisgarh. It is also eyeing coal mines in West Bengal.
"We have enough cash reserves. There is no dearth of fund as we are sitting on a Rs 6,000 crore cash reserve. We will fund the acquisition from that reserve," Jain said.
NMDC, he said, will raise its production by 10 per cent starting from April this year to meet the growing demand from domestic steel makers.
"Last year, we had produced almost 27 million tones. It will be around 30 million tonne this year," Jain said adding that the company has set a target of reaching to 50 million tonne production by 2015.
Out of its total production, the company exports 3.5 million tones a year. Jain said the company has no plans to increase exports since the main objective of the company was to meet the requirement of domestic customers.
"We are on the look out for iron ore mines for acquisition in Canada and West Africa. At the same time, we are looking for some coal mines in Australia also," V K Jain, Director (Production), NMDC said here today.
Jain said that the company has already sent its representative in Canada, but when asked how close was the acquisition, he said, "it will take time".
Domestically also the company intends to acquire iron ore mines in Karnataka, Jharkhand and Chhatisgarh. It is also eyeing coal mines in West Bengal.
"We have enough cash reserves. There is no dearth of fund as we are sitting on a Rs 6,000 crore cash reserve. We will fund the acquisition from that reserve," Jain said.
NMDC, he said, will raise its production by 10 per cent starting from April this year to meet the growing demand from domestic steel makers.
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"Last year, we had produced almost 27 million tones. It will be around 30 million tonne this year," Jain said adding that the company has set a target of reaching to 50 million tonne production by 2015.
Out of its total production, the company exports 3.5 million tones a year. Jain said the company has no plans to increase exports since the main objective of the company was to meet the requirement of domestic customers.
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