State-owned iron ore miner NMDC is engaged in active discussions to acquire coking coal assets in Russia and Mozambique to feed its upcoming steel-making plant in Chhattisgarh.
State-owned iron ore miner NMDC is engaged in active discussions to acquire coking coal assets in Russia and Mozambique to feed its upcoming steel-making plant in Chhattisgarh. "NMDC is in active discussions to acquire coking coal assets in Mozambique and Russia. It is scouting for coking coal assets in the US also," the company said in a recent presentation. NMDC is setting up a three million tonnes per annum steel plant at Nagarnar in Chhattisgarh with Rs 15,525 crore outlay.
Coking and iron ore are two basic raw materials for steel. While being the country's largest iron ore producer, NMDC can ensure uninterrupted supply of the raw material, it will have to partially depend on imported coal to fuel the blast furnace. Meanwhile, NMDC has taken "all necessary steps" to start production from the Shahpur West coal block in Madhya Pradesh in 2014, coinciding with the commissioning of the steel plant.
Also Read: Mcnally Bharat rises 2% on order from NMDC
Coal Ministry had allotted two blocks -- Shahpur East and Shahpur West in Shahdol district of Madhya Pradesh -- to NMDC in 2007 with reserves of 52.7 million tonnes and 63.6 million tonnes respectively. The mine plan for Shahpur West has already been approved and the detailed project feasibility report is currently under preparation. NMDC has also applied for nine coal blocks for captive use.
Sources said NMDC is also looking for buying iron ore assets in Brazil and Russia. It sealed its maiden overseas buy by acquiring 50 percent stake in Australian firm Legacy Iron Ore last year. The company has also initiated steps to increase its iron ore production capacity to 48 million tonnes per annum (MTPA) by 2014-15 from the current installed capacity of 32 MTPA.
NMDC stock price
On May 25, 2015, NMDC closed at Rs 130.50, up Rs 0.85, or 0.66 percent. The 52-week high of the share was Rs 196.15 and the 52-week low was Rs 123.00.
The company's trailing 12-month (TTM) EPS was at Rs 17.75 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 7.35. The latest book value of the company is Rs 75.64 per share. At current value, the price-to-book value of the company is 1.73.
Set email alert for
ADS BY GOOGLE
video of the day
See choppy mkt till earnings weak, be stock-specific