The proposed disinvestment plans for state-owned trading giant MMTC will be implemented in the next financial year, said Commerce and Industry Minister Anand Sharma. He was talking to reporters here on the sidelines of a function to inaugurate a liaison office for the trading giant.
The new office will help MMTC directly source metals and commodities like gold, diamond, coal and iron ore from Africa instead of dealing with third parties.
Sharma, who inaugurated the new office in the posh Sandton City, said the move would help the company trade directly and enter into long-term purchase agreements for fertilisers, coal and gold.
MMTC Chairman and Managing Director H S Mann said the company would be looking to enter into joint ventures in coal mining, rough diamonds, and fertiliser products. MMTC may partner with a PSU to set up a plant for phosphatic fertilisers in South Africa and another partner to produce ferro chrome from chrome ore.
Speaking on the occasion, South Africa’s trade minister Rob Davies said: “Instead of dealing with third parties, we are going to trade directly with each other and that would reduce costs for both as there will be no bankers and agents.”
The MMTC liaison office set up today will later be upgraded into a full-fledged establishment. “Over time, it could graduate into a full-fledged office like the one we have in Singapore, which is a fully-owned subsidiary,” said an official.
India imports 800 million tonnes of coal, MMTC accounts for a quarter of these imports. With an MMTC gold refinery coming up in India near Gurgaon, it plans to increase gold imports as well as imports of coal, iron ore and phosphatic fertilisers, said Mann.
“It’s a pragmatic step for MMTC and will do a lot of good for brand India,” said Raman Agarwal, chairman of the India Business Forum in South Africa.
The Johannesburg office will not only be used to source precious stones like diamonds, but help in expanding the company’s business in the African continent. Africa is attracting investments by global mineral giants to tap its natural resources.
Disclaimer: The reporter is in South Africa at the invitation of MMTC
