Two NMDC’s directors were quoted by The Economic Times as saying that the company is negotiating currently assessing Renuka Energy Resource Holdings’ subsidiary Renuka Coalindo, which operates a 1.2mt coal mine in the Jambi province of Sumatra, Indonesia, for the acquisition.
NMDC another board member said, "Such a proposal did come to us and the subcommittee has asked for a technical due diligence of the project."
The Jambi Prima coal mine was acquired by Renuka Coalindo in November 2011.
With reserves of 92mt, the Jambi Prima coal mine has operational capacity which can be scaled up to 4-5mt, officials said.
A senior steel ministry official said NMDC is mining company and aims to work towards becoming a mining giant such as BHP, which mines all kinds of minerals.
NMDC focuses on iron ore, coking coal and potash assets in the interest of India’s raw material security.
