NMDC and Spice JV eying iron ore mines in Armenia

It is reported that NMDC Spice International, a proposed 50:50 JV between state owned miner NMDC and Spice Minerals and Metals, a part of the Spice Energy group, is close to acquiring two iron ore deposits in Armenia. The acquisition is likely to entail an investment of USD 500 million.
Spice Energy is promoted by a group of individuals has interests in oil and gas, power and alternative fuels. Mr Sanjay Malhotra one of the promoters of Spice Energy has a stake in SpiceJet.
Mr Rana Som chairman & MD of NMDC said two iron ore deposits had been identified with reserves of 300 million tonnes and 75 million tonnes and the final discussion over the acquisition will be held by the weekend.
As per report, investments in these mines will be roughly 30 % more than in most mines because the quality of ore here requires higher value addition and pelletization. The investment will be equally shared between NMDC and the Spice group.
10/07/08 SteelGuru

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Categories: Foreign Jul 2008, SpiceJet Jul 2008