NMDC taps Rio Tinto for Birbhum mine
Public sector diversified mineral resources company, NMDC, is planning to induct a foreign partner in its proposed joint venture for thermal coal in West Bengal, and has held talks with Rio Tinto, the world's second largest mineral company.
Rana Som, chairman and managing director of NMDC, said, "We would look at technology and cost. We have held talks with Rio also, but ultimately it will be a commercial decision."The coal block in Birbhum, West Bengal, is among the five largest mines in India with estimated reserves of around two billion tons. The initial investment is pegged at Rs 1,000 crore.NMDC already has a memorandum of understanding (MoU) with Rio Tinto for a joint venture aimed at developing mines in the domestic and overseas markets.Som said, the coal block would involve huge overburdening in the first phase and for that part Rio would not be required.
NMDC today signed an MoU with the West Bengal Mineral Development & Trading Corporation (WBMTDC), for exploring and developing the Deocha-Pachami block covering 9.7 square km.Som said, initially work would begin on 3.3 square kilometre, which would have reserves of 450 million tons and a depth of 100 metres.
The joint venture company would be formed once the coal block was allotted. NMDC would have 50 per cent while the WBMDTC would have 40 per cent and another 10 per cent would be with West Bengal Power Distribution Company Limited.NMDC has the right to dilute up to 15 per cent of equity.With this move NMDC, India's largest iron ore producer and exporter, was making a major foray into thermal coal mining.
Earlier NMDC had been allotted two coal blocks in Madhya Pradesh but those were much smaller.Som said, NMDC was interest in bulk mining like iron ore and coal and had decided to embark on bauxite mining as well. "NMDC has applied for lease in Jharkhand," he said.NMDC today signed an MoU with the Bengal government for offtake agreements from new iron ore and bauxite mines of the PSU.
Apart from diversifying into coal and bauxite, NMDC has also entered into a joint venture with Rashtriya Chemicals & Fertiliser for rock phosphate mining."We have started work in Jordan, Tunisia and Syria and have already bid for exploration. India is a net importer of 95 per cent of rock phosphate...
NMDC signs MoU with WBMDTC for coal mining
KOLKATA: The public sector unit, NMDC Limited, on Tuesday signed a MoU with West Bengal Mineral Development and Trading Corporation to explore, develop and mine coal at Deocha- Pachami block in Birbhum district which has a reserve of two billion tonne. --I t will be a 50:50 joint venture with WBMDTC. The coal block is spread over 9.7 sq km of which mining will be initially done in 3.2 sq km having a reserve of 450 million tonne at a depth of 100 metre,-- said Mr Rana Som, CMD, NMDC Ltd. This is one of the five biggest coal blocks in the country, Rana said.
The MoU was signed by NMDC Director (Technical) P S Upadhyay and WBMDCTC CMD Arun Kumar Sen in the presence of Chief Minister Buddhadeb Bhattacharjee and Steel Minister Ram Vilas Paswan. The MoU paves the way for geological exploration of coal deposits to establish technical and commercial viability of the project. Som said that NMDC, which is on fast track expansion and diversification mode, would make initial investment of about Rs 1,000 crore for the project.
The state government would acquire and provide the land for coal mining in the block, he further said adding that NMDC, which had forayed into coal mining, has also started exploration process for two coal blocks in Madhya Pradesh. - PTI...
NMDC hikes ore prices for long-term deals 30-40%
KOLKATA: NMDC Ltd has increased iron ore prices for long-term agreements (LTA) by 30-40% across a range of products after final round of negotiations with Japanese steel mills --- or the so- called JSM pricing --- last week. The prices have been fixed for 2008-09.The hike is based on the increase in Australian ore prices, where prices for iron ore lumps were raised 96.5% and for iron ore fines 79%.
"Based on this formula, the increase in prices has worked out between 30% and 40%. Though this is the final price, we are looking at alternatives for the customer. We are awaiting responses from the customer," company sources told DNA Money, hinting at the possibility of signing some contracts on lower rates.
The steel sector is expected to fiercely oppose the hike because of the downturn, sources said.NMDC's new price of iron ore lumps would be $126 per tonne against $65 per tonne last year.Such an increase would be almost impossible for domestic steel producers to digest.Additionally, steel companies have gone for production cuts, which would mean less demand for the metal.
"Amid falling international prices and low global demand, a hike raw material costs would be extremely worrisome," said a top steel company executive who did not wish to be named.With any increase in prices, NMDC would stand to gain as it sells 90% of its product through long- term contracts to domestic steel makers, sponge iron plants, pellet plants and pig iron plants.But now the question of being able to sell at such high prices is a crucial issue.The price increase move will affect all major domestic steel players, which buy ore from NMDC.The impact will be less on SAIL and Tata Steel, which have their own captive ore mines.Iron ore prices especially spot prices have tanked over the last couple of months and now are around 30-35% lower than contract prices.
Industry sources said that given the grave international situation and downward demand, international benchmark of iron ore may come down significantly by 15-20% next year."The Australian prices were fixed in the beginning of the year when there was a boom time. The Indian LTA prices got delayed and were fixed on the earlier trend", a source said.About 10% of NMDC's products are exported through MMTC.
PMO rejects Rashtriya Ispat Nigam, NMDC merger proposal
Nov 12, 2008Our BureauHyderabad, Nov. 11 The proposed merger of Rashtriya Ispat Nigam Ltd (RINL) and National Mineral Development Corporation (NMDC) has been rejected by the Prime Minister's Office (PMO).--The idea of merger of RINL and NMDC was not considered by the PMO as it was not in the interest of both the companies,-- Mr Pramod Kumar Rastogi, Secretary, Ministry of Steel, told Business Line on the sidelines of a conference here on Tuesday.He added that another reason for not considering the proposal was because of the long term contracts that NMDC has entered into with domestic as well as international steel companies.Different takesBoth NMDC and RINL had different takes on the merger proposal. While RINL was keen because a merger would ensure raw material security for the company, NMDC was not too keen as it wanted to foray into steel production.At present, RINL meets its iron ore requirement from supplies made by NMDC from its Bailadila mines in Chhattisgarh. RINL in 2007-08 spent around 60 per cent of its total operating expenditure towards raw material procurement, of which iron ore constituted 25 per cent and coal 26 per cent.RINL has undertaken a massive expansion programme to increase its production capacity from 4.15 million tonnes (mt) to 6.3 mt by 2010.The company also has moved proposals to get captive iron ore mines in Orissa, Jharkhand and Chattisgarh. But none have yielded any positive results so far.NMDC, on the other hand, plans around Rs 14,000 crore for setting up a 3 mt greenfield steel plant at Nagarnar in Chhattisgarh.will this stock ever go anywhere ?
It is known that "NMDC will not go anywhere..." true... very true... you know that`s why we love natural resource stock like NMDC, SESA, VEDANTA, GUJRAT NRE COCK, ASHAPURA... ROHIT- FERRO so much... they are not going to vanish... :) mater of the fact is, we all know that they have just complete their marathon run (of course win it) and in next 2 yr they will move in the side line... but my friends... insted of investing in GOLD ang keep it in your locker pls buy some NMDC and forget it for next 5-7 yr... then one day you will see you childish investment will probably give you the best return of your life... see today when other corporates are running here and there for liquidity... the VEDANATA chairman is looking for fresh mines in all over the worlds... neither he is a child... nor we are....
NMDC, Bengal to join hands for coal
After JSW Steel ground breaking for its 10-million steel plant, the state government will shortly sign a memorandum of understanding (MoU) with India's diversified mineral resource company NMDC for exploration and development of one of the largest non-coking coal sites having reserves in excess of 2 billion tonnes.
The coal block would be jointly held by NMDC and West Bengal Mineral Development & Trading Corporation (WBMDTC) in equal partnership.
Rana Som, chairman and managing director, NMDC, confirmed the development....
OMDC is listed in calcutta stock exchange. it is the highest divident paying company in india. the price of omdc is more than 40000 as the eps of omdc was 3100 and if you compare it with other mining cos like nmdc,gmdc or sesa goa you can easily quote its price above 40-45000premium is asked since it is supposed to be very good. it is also 0 debt company. there were rumors that it will get listed in bse in nse some time back floating stock is also low ony 2 lac chares.you have never seen a balance sheet like omdc in any company.Highest Dividend in India by any listed co. Rs. 434 per share of Rs. 10 for March 07 (4340%) which is only 15% of distributable profits.
Continue with SIP in NMDC...
We know it very well, that in next commodity bull run NMDC will thrive...See china already inject 500+ billion in their system... rest of the world will follow soon. You know I strongly belief that this economic slow down will ensure that this time commodity circle won`t take 8- 12 yrs to complete... Infrastructure spending in US, CHINA, Developing world will definitely going to start soon..., Auto industry bust in US and other country... and so on...In next market correction just increase your holding...
I am regularly investing in NMDC, SESA, ASHAPURA..I am confident my money is in safe counter... and of course I am ready to wait 5-8 yrs... may previous experience told me that that we will win this race...
NMDC extracts 100 pc hike in ore prices from Japanese mills
New Delhi, November 9 : Days after securing a hike in prices for its ore from domestic buyers, state- run mineral giant National Mineral Development Corporation (NMDC) has notched up another victory by securing a 102 per cent hike on its ore exports to Japanese steel mills implying that it will now get $129 per tonne on its exports instead of $65 currently. The navratna company has secured the hike in the midst of a raging debate between the Steel and Commerce ministries on the propriety of such a move by the PSU.
"Yes, NMDC has managed to secure a 96 per cent hike on its export prices from its Japanese buyers. What more, the JSMs have also agreed to give a bonus hike of 6 per cent on its Baladila Lump Ore to the navratna company. Now it is likely to get $129 per tonne on exports," Steel Secretary Pramod Kumar Rastogi told The Indian Express. He said NMDC Chairman and Managing Director Rana Som along with senior officials of his ministry have secured the hike after recent negotiations with the JSMs. Som had pointed out that NMDC is required to pay additional railway freight of about Rs 1,000 per tonne for exporting the mineral besides the imposition of 15 per cent ad-valorem duty (now 8 per cent) on ore export has entailed additional liability to it. "As a consequence it appears that NMDC will have to incur an additional cost of around Rs 1,800 per metric tone for its exports which would bring down its net realisation to an abnormally low figure," he had said.
The CMD said his company would have no justification to export unless the additional cost incurred on account of railway surcharge and export duty is reimbursed by its overseas buyers-Japanese Steel Mills and Posco. The PSU cited that private miners in the country are charging market prices for their ore from the domestic buyers and the prices of calibrated ore prevailing currently varies between Rs 5,500 to Rs 7,000 per tonne depending on size and Ferrous content. NMDC on the other hand supplies about 95 per cent of its produce through LTAs.But steel and commerce ministries were divided on the issue. While the steel ministry endorsed its mining giant's proposal to include rail freight and 15 per cent export duty costs on top of a higher price for iron ore, the commerce ministry has opposed it saying India would risk jeopardising......
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