NMDC inks deal with Australian mining major

State-run mining company NMDC Ltd on Monday said it had signed a non-binding memorandum of understanding with Minemakers Ltd to develop the Wonarah phosphate deposit in Australia and would buy a 50 per cent stake in the project after undertaking a joint feasibility study.

“Upon successful completion of the feasibility study, NMDC proposes to acquire a 50 per cent stake in the Wonarah project and participate in the development of the project,” NMDC said in a statement to the Bombay Stock Exchange. The study is expected to take around a year.

Last month, NMDC had signed an initial pact to buy a 50 per cent stake in Australia’s Legacy Iron Ore as part of its overseas expansion plans to keep buying costs low.

“The proposed Wonarah development will include a mine and downstream processing facilities to produce beneficiated rock phosphate for export, phosphoric acid and finished fertiliser products such as diammonium Phosphate and Monoammonium Phosphate,” Minemakers said in a statement.

It said after the study, both the companies would form a joint venture for the development of the asset and NMDC would have full responsibility to raise finances for the project through debt.

NMDC shares on Monday closed at Rs 263.1, up by 0.1 per cent, on the BSE.