NMDC Ltd. has signed an initial pact with Australia's Legacy Iron Ore Ltd. to buy up to a 50% stake in the company. The deal is in line with NMDC's corporate strategy for overseas acquisitions in projects that keeps buying costs low and ensures minimal risks. The deal's value is estimated around 1.35 billion rupees ($29.8 million).
Legacy Iron Ore has licenses for two iron ore projects in Australia, which are unexplored. The estimated reserves are 130 million tons.Besides iron ore, the Australian exploration company has licenses for gold and manganese and is also venturing into coal and NMDC could become a partner.