Announcement

Collapse
No announcement yet.

Rio Tinto, NMDC To Jointly Explore Mining Reserves

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Rio Tinto, NMDC To Jointly Explore Mining Reserves

    RIO TINTO, NMDC TO JOINTLY EXPLORE MINING RESERVES

    Business Standard
    August 13, 2008, 16:09 IST
    New Delhi

    Global mining major Rio Tinto and state-run NMDC Ltd are set to enter
    into an agreement to explore global and domestic iron ore reserves,
    a top official of the Indian company said.

    "We will be entering into a memorandum of understanding (MoU) with
    Rio Tinto on August 18 for scouting mining resources in different
    parts of the world including in India," NMDC Chairman Rana Som said
    over phone from Hyderabad.

    The MoU envisages a strategic partnership between the two
    leading mining companies for prospecting iron ore reserves, both
    internationally and domestically, he added.

    "The two companies may also contemplate entering into a joint venture
    once they identify mining properties," Som said.

    NMDC has already entered into a joint venture agreement with country's
    Spice Energy and is about to acquire iron ore mines in Armenia,
    Eritera and Congo.

    Asked about the price negotiation with Japanese and South Korean steel
    mills for supply of iron ore, the NMDC Chairman said the matter was
    pending with the government.

    "We have made our point that high freight charges and ad-valorem
    export duty on iron ore are hitting our margins. It is now up to the
    government to decide whether we should seek higher price for our high
    quality iron ore from Japanese and Korean mills or not," he said.

    NMDC is seeking up to 97 per cent increase in iron ore prices from
    foreign steel makers, a move that could have similar repercussions
    on the domestic market, which may result in higher steel prices.
Working...
X