India's State-Run MMTC to Float JV With Tata Steel for Mine Hunt
By Commodity Online
18 Apr 2008 at 09:58 AM GMT-04:00
resourceinvestor.com
NEW DELHI (CommodityOnline.com) -- In yet another major public-private partnership, state-run trading company MMTC will float a joint venture company with Tata Steel Ltd. [NS:TATASTEEL] for acquiring mining projects in India and abroad.
A company release said that the MMTC Board approved the proposal for the JV with Tata Steel for exploration and development of mines for minerals, ferrous and non-ferrous ores, precious metals, diamonds and coal on public-private partnership route.
The JV will focus on African countries like Angola and Namibia and central Asian countries like Kazakhstan and Uzbekistan to bid for gold and diamond mines, besides acquiring coal and iron ore mines.
The board of Tata Steel, which met on April 9, has approved the proposal to form a JV with MMTC. While Tata Steel will hold 74% stake in the venture, MMTC will have the balance 26% equity.
Earlier the Minister of State for Commerce and Power, Jairam Ramesh said the governments of Angola and Namibia had already offered a diamond mine each to India for exploring and developing.
“Considering that we are the largest importer of gold and diamond, this provides us with an excellent opportunity,” said the Minister.
MMTC, India's largest international trading company, is also setting up a silver and gold medallion and jewellery manufacturing unit in Haryana. The unit is likely to be operational by end of 2009.
The company reported profit after tax of Rs 90.62 crore for the last quarter of 2007-08, registering a growth of 133 per cent over the corresponding quarter of 2006-07.
For 2007-08, MMTC earned a profit after tax of Rs 206.15 crore, up 63% over Rs 126.8 crore recorded in 2006-07.
For the quarter ended March 31 2008, the company clocked a turnover of Rs 9391 crore, up 92% over the corresponding quarter of 2006-07. Its turnover stood at Rs 26,276 crore for 2007-08 as compared to Rs 23,302 crore in the previous fiscal.
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