NMDC has executed the acquisition of 50% stake in Legacy Iron Ore at a total investment of Rs 99.63 crore. The company has sourced the funds from its internal accruals. This is this first overseas acquisition of iron ore resources by a public sector company.
With this acquisition, NMDC is expected to raise its iron ore production capacity to 48 million tonnes per annum (mtpa) by 2014-15 from current installed capacity of 32 mtpa. After this acquisition of Legacy, the entity is planning more acquisitions in Brazil, Mozambique, Russia, USA and South Africa.
As part of diversification plan, NMDC’s board decided to invest in the Legacy Project in Australia. Pursuant to which, on May 21, 2011 a Memorandum of Understanding (MoU) was signed between NMDC and Legacy and a Share Subscription agreement was agreed between NMDC and Legacy on October 20, 2011.
Legacy Iron Ore (Legacy) is a Perth-based Australian exploration company with focus on iron ore, gold, manganese and base metals. Incorporated in April, 2007 Legacy was listed on the Australian stock exchange (ASX) in July 2008. Legacy has six exploration stage projects in Western Australia.
