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NMDC to select three agencies to conduct due diligence for three overseas projects

27 Feb 2012 Evaluate

NMDC, India’s biggest iron ore miner is planning to select three different agencies soon for conducting due diligence for three overseas projects in which it is looking to acquire a stake. The agencies will conduct due diligence for Ridley iron ore deposit of Atlas Mining, Wonarah phosphate reserve of Minemakers in Australia and an iron ore project in Brazil, and will be submitting report in 45-60 days.

NMDC has already entered into an exclusive agreement with Minemakers to acquire 50 percent stake in Wonarah deposits, which is considered as one of the largest under-developed phosphate reserves in Australia, with an estimated resource of 1.26 billion tonnes at 12 percent phosphate.

As the agreement will end by February 28, NMDC may request the Australian company to extend the deadline.

The Ridley project, wholly-owned by Atlas Mining, contains 970 million tonnes of high grade iron ore reserves and can produce 330 million tonnes of ore over 30 years.

NMDC posted a rise of 22.45% in its net profit of Rs 1858.81 crore for the quarter ended December 31, 2011 as compared to Rs 1518.03 crore for the same quarter in the previous year. Total income increased by 14.79% from Rs 2915.94 crore for Q3FY11 to Rs 3347.34 crore in the quarter under review.

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