NMDC-KKM in JV scouting South African mines

The National Mineral Development Corporation (NMDC) has recently formed a 50:50 joint venture with South Africa based Kopano Ke Matla (KKM) company to jointly explore the acquisition of coal, iron ore and manganese mines in South Africa.

According to sources both the companies have entered into an agreement and also set up a joint venture company named as Kopano NMDC Minerals Limited to secure mining assets adhering to the Black Economic Empowerment (BEE) scheme and ensuring circulation of capital and investment to lesser developed areas of the country. The new entity will largely acquire South African government owned mineral assets.

Sources claimed that though the quantum of the exact amount the two companies pooling together is not yet known but they are expected to contribute Rs. 5,000 crore each in the initial stages with a provision to increase their share as per requirements.  The new entity with its headquarters at Jonesberg will soon get its Chief Executive Officer (CEO) and supporting staff after which it will go all out to acquire both new and existing mining assets in South Africa.