NMDC will complete due diligence for minority stakes in Vietnam mines

Mishra Dhatu Nigam Ltd(Midhani Ltd), a special grade metal making Defence PSU Thursday said its partner NMDC Ltd is expected to complete the due diligence for picking up minority stake in a tungsten mine located in Vietnam. NMDC and Midhani signed an MOU in October 2016 to explore suitable Tungsten assets in India and abroad for investment as well as development of technologies for converting tungsten ore to Ammonium Para Tungstate. NMDC is currently in discussions with Vietnam-based Masan Resources to acquire considerable stake in Nui Phao polymetallic mine with rich tungsten mineral, located in Thai Nguyen province in Northern Vietnam.

"They (NMDC) have already found a mine in Vietnam. Now they are doing the due diligence. In February it is expected to complete and maybe at the beginning of the next financial year, we will complete the task of how much to acquire in the mine," Chairman and Managing Director of Midhani, Dinesh Kumar Likhi told PTI. The official further said they were in the process of setting up a plant here for making tungsten power from the raw material. "This facility is independent of Masan resources agreement. Even ifthe MoUis not signed with Masan resources, we can buy it(raw material for making tungsten power)from the market and will start doing it. it is a processing plant,"he added. Midhani Thursday signed a MoU withTubacex, a Spanish seamless stainless steel tubular solutions provider for exploring business opportunities and developing tubular products for power generation and oil and gas industries.

Likhi said Tubacex recently acquired a pipe manufacturing company in Diu and Daman. "We are strong in melting, forging. we don't make pipes, it is complementary to both the organisations. Midhani will offer them melted product. They may offer piping solutions. The main focus is on oil and gas industry and to the international market,"he added. On the current order book of Midhani the official said currently it will be more thanRs1100 crore and they expect Rs500 to 600 crore worth of orders before March 2019. He said profitability of the company for the current fiscal may come under pressure due to the pay revision implemented for the employees and also high raw material cost. He, however, said in FY 20 the PSU would have smooth sailing.

(With inputs from agencies.)