Rinehart’s Hancock weighs $3.3 billion iron ore mine project
Hancock acquired a 51% interest in the Mt Bevan project from Legacy Iron Ore Ltd. and Hawthorn Resources.
India is not China when it comes to successful acquisitions of foreign mining companies, reports the Wall Street Journal.
The South Asian economic powerhouse needs raw materials to manufacture goods and to power factories, but is restricted in what it can mine domestically. It can take a mining company years to acquire a mining licence, and illegal mining of iron ore, limestone and bauxite has damaged the environment and given mining a bad name. Last year, for example, iron ore mining was banned in the state of Karnataka to prevent further environmental destruction. The government’s system of allocating mines is also rife with corruption.
WSJ says Indian mining companies looking to make overseas acquisitions are running into difficulties:
Among the major disappointments is the inability of a consortium set up by five large state-run companies to buy coal mines overseas.
Private sector companies have fared no better in their bid to acquire overseas mines.
Resource nationalism, on the rise in mineral-rich developing countries, is a major roadblock.
Indian companies have had some success in acquiring coal properties in Australia but even here there are problems reports WSJ
In Bolivia, a plan by India’s Jindal Steel & Power to mine a 20-billion tonne deposit has run into trouble after the Bolivian government asked the company for another $18 million in bank guarantees for not meeting contractual obligations. A similar amount was demanded in 2010 for not meeting commitments. Supply of gas to the proposed steel plant is the main sticking point.
12 Comments
Sunil Banerji
Where is your museum? [email protected]
Chalkoscl
We are a Chilean company with IRON, COPPER and GOLD properties. We are looking for JOINT VENTURE partner.
[email protected]
YM
Buy Coalspur Coal Mines in safe Alberta!
Sardar Rasheed
AND HUGE UNTOUCHED DEPOSITS OF QUARTZ
Dhabalsen
You are very correct but I wish you were more analytical and given some reasons.
Sunil Wadhwa
I HAVE COPPER MINE NEAR THAILAND BORDERS
IF interested please contact on [email protected]
Vlad
please forward some basic information regarding your project
Sunil Banerji
Forward info with details to [email protected]
Thokozani
Can someone talk to me I have mines in Africa .Copper and Gold .
Regards
Thokozani . My eMail is [email protected]
Vlad
thokozani
please forward any information on your projects to [email protected]
we are an Australian mining company sourcing suitable mining prospects and have a number of projects in Africa. Vlad
Sunil Banerji
Please send details of your mining assets in Africa to [email protected]
Yashvanth Rao J
Greater autonomy is a prerequisite for Indian state-owned companies to acquire overseas assets. Presently a well-defined strategy, core expertise team, effective decision making, and funds are few issues faced by Indian state majors.