NMDC to buy up to 50% stake in Australian miner Legacy Iron Ore

HYDERABAD: State-run miner NMDC on Wednesday signed an agreement to acquire up to 50% stake in Australian mineral exploration company Legacy Iron Ore. CMD Rana Som said the proposal is still in early stages and the cost of acquiring shares is yet to be determined.

Regulatory and shareholder approvals are also needed. “The MoU gives access to NMDC to get into Australia and devise further strategy. The valuation of the stake is yet to be done,” Som said from Australia, adding that Legacy has interests in gold and manganese, besides iron ore. Once the deal is approved by shareholders, NMDC can appoint nominees to the board of Legacy.

NMDC intends to use Legacy as a vehicle to acquire large-scale Australian bulk commodity projects such as coal and iron ore. “Legacy is delighted to have entered into an MoU, whereby NMDC can acquire up to 50% of the company, allowing Legacy to be become a diversified resource house.

This is the first investment of its type by NMDC into the Australian resource sector, ” Legacy chief executive Sharon Heng said.