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NMDC raises stake in Australia’s Legacy Iron Ore to 78.56%

04 September, 2014

India’s state-run iron ore producer NMDC Ltd has increased its stake holding in Australia’s Legacy Iron Ore Ltd to 78.56 per cent by acquiring additional 30 per cent stake, as per a stock market disclosure.

The state-run iron ore miner acquired additional stake through exercise of its entitlement (in a right issue) of fresh shares.

It paid A$12.1 million ($11.2 million) for the additional stake.

NMDC had first acquired 50 per cent equity of Perth-based Legacy Iron Ore in 2011, at 8 cents a share aggregating A$18.89 million (Rs 99.63 crore).

The Australian firm had floated the rights issue to raise capital “for project development, repayment of borrowings, and general working capital purposes.”

Meanwhile, in a separate development, NMDC decided to keep prices of lump iron ore and iron ore fines unchanged for September

For August, the company registered an increase of 23 per cent in its sales at 2.52 lakh million tonnes compared with dispatches of 2.05 million tonnes in the same period last year. The company’s production also rose by 14 per cent to 2.23 million tonnes from 1.96 million tonnes during August last year.

Shares of NMDC were trading at Rs 177.50 per share, up 1.69 per cent at 1:40 PM (IST) from their previous close on the BSE.

(Edited by Joby Puthuparampil Johnson)


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NMDC raises stake in Australia’s Legacy Iron Ore to 78.56%

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