State Indian group NMDC negotiates acquisition of company with coal assets in Mozambique

20 September 2012

State Indian group NMDC has started talks with two companies from Mozambique and Russia to acquire coal assets in the two countries, according to the group’s annual report and accounts for the 2011/2012 financial year, cited by the Economic Times.

In the Mozambican case, the company is Sol Mineração Mozambique, which has a prospecting license for an area in the Mutarara district of Tete province, with estimated reserves of 500 million tons of coking coal and thermal coal.

“The prospecting activities have been concluded and the company is soon expected to receive its mining license,” the group’s acting chairman C S Verma said in the report.

The Russian company, whose name was not given, has a license for the Kuzbass, basin in the Kemerovo region, which has around 50 million tons of coking coal and additional potential of 100 million tons.

In 2011 the group acquired Australian company Legacy Iron Ore and a few months ago it signed an agreement with Brazilian company Amplus Mineração to invest in iron ore mining in Brazil. (macauhub)