NMDC is likely to acquire a 50 per cent stake in Ferrous Resources' Brazilian
operations for $2.5 billion (approx Rs 11,500 crore).
NMDC has signed the non-disclosure agreement with the Ferrous Group, a
multinational consolidator of iron ore with properties in the US, Brazil and
Canada.
Under the proposed deal, the Ferrous Group is to issue fresh shares to NMDC
over the next few years. The funds will be used for developing mines and
building infrastructure.
The Brazilian venture has around three billion tonne iron ores reserves with
35.6 per cent grade (Fe) content. Once operational, the mines could produce
about 25 million tonne of iron ore initially that could be converted into 10
million tonne of high 67 per cent Fe grade ore concentrate through
beneficiation.