NMDC has invited proposals for empanelment of consultants exclusively for mergers and acquisitions. The PSU is in the final leg of due diligence for buying mines in the US, Brazil, Russia and Mozambique, which is expected to happen in the next two to three months. The proposed panel would facilitate its M&As plans both in domestic and international markets.
?The thrust shall be primarily on overseas M&As. There will be four separate panels one each for financial/transaction, technical, tax and accountancy and legal due diligence. Responsibility of co-ordination and rendering a comprehensive service/solution for a target acquisition will be with the financial cand transaction. The consultants will be empanelled initially for a period of two years,?? NMDC sources said.
The selected consultants will be invited to bid through a limited tender enquiry at sole discretion of NMDC as and when projects arise. The proposals from consultants will be accepted after an evaluation of their proposals received pursuant to the RFP issued on a project specific basis.
The PSU recently secured a 50% stake in the Australian exploratory firm, Legacy Iron Ore for A$18.89 million. The PSU will be meeting the required funds through its internal resources. Sources also said that NMDC is also in talks to buy coking coal mines from privately held US-based Tacoa Minerals. It is also conducting a joint feasibility study with Minemakers to develop the Wonarah phosphate deposit in Australia.
Meanwhile, NMDC and Russia?s second-biggest steel-maker Severstal have signed an Implementation Protocol with respect to the memorandum of understanding they entered in December, 2010, for a joint venture steel plant in Karnataka. According to NMDC, the protocol defines the initial capacity of the proposed JV plant, which would be three million tonnes per annum of finished steel. The protocol defines the target initial plant capacity which would be three million tonnes finished steel.