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NMDC may tie up with Stamico for mineral exploration in

Press Trust of India  |  Hyderabad 

State-owned NMDC Limited which is currently developing a gold mine and is in the process of setting up a pilot gold refining facility in Tanzania is likely to enter into a MoU with that country's State Mining Corporation (Stamico), for mineral exploration there, sources said.

NMDC is holding four mining licences covering over 38. 8 square kilometres in Tanzania.

NMDC has carried out some portion of exploration work and completed it.

The Indian miner is also putting up a four-tonne per hour capacity processing plant in the African country.

"A high-level delegation from NMDC and the Ministry of Steel met the directors of Tanzania State Mining Development Corporation in the recent visit to Tanzania. Both the parties have shared their knowledge with each other," sources told PTI.

Tanzania is ready to make a JV or some sort of understanding with NMDC for developing new mines there. As NMDC has vast knowledge of mineral development, they want to collaborate with us. Stamico is also holding some licence is there in that country, the sources added.

Two tender processes are on- one is for carrying out the detailed exploration work in the remaining area which was not explored earlier and the second for setting up four ton per hour processing pilot plant as part of the forward integration, sources said.

Tanzania's Ministry of Energy and Minerals had granted NMDC four mining leases at the Bulyang'Ombe gold prospect in 2012 having a total area of 38.83 sq km for 10 years.

A top official of NMDC had earlier said the miner was planning to invest about US USD 50 million in the Tanzanian mining project.

According to a communication from the Indian Steel Ministry, there may be opportunities for both NMDC and Stamico in the long run.

The communication also advised the top brass of the PSU to look for "possible collaboration opportunities" in Tanzania, with Stamico.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, January 22 2019. 17:05 IST
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