NMDC plans to bid for entire stake in Russia’s Vincy Coal

In a bid to acquire 2-3 overseas properties by this year, state-owned iron ore miner NMDC is planning to bid for acquiring entire stake in Russia’s Vincy Coal in two or three days. Bid for Vincy Coal, which is estimated to have coking coal reserves of 70-100 million tonnes, will be submitted by November 1, 2011 by the company. The company’s board will meet this week before submitting the bid.

Further, for the past few months, the company is in talks to acquire a substantial stake in Greystone Mineracao from London-based Zamin Advisors, a private company controlled by NRI Pramod Agarwal.  The proposed mine area of Greystone is understood to have reserves of 260 million tonne of iron ore.

Recently, NMDC decided to buy four more properties overseas following the deal to acquire 50% stake in Australia’s Legacy Iron Ore last month. It eyes total acquisition cost including payment of initial development cost incurred by the holding companies at around $500 million.