India's NMDC Gets gold mining lease in Tanzania

India’s NMDC, the country’s largest iron ore mining company, has secured a gold mining lease in the Bulyang’Ombe , Kahama District and Saga Hills Nzenga District area of Tanzania.

Chairman N K Nanda said the mine was estimated to be having gold deposits of four tonnes and NMDC would start mining within six months. The initial investment would be 50 million US dollar (Rs 250 crore).

NMDC has been exploring for gold in Tanzania for four years. “We have done 15,000 metres of drilling in this connection," Nanda said.

With the lease in hand, NMDC is trying to find a joint venture partner for developing the African gold mine. If it is not able to, it would undertake mining activity on its own, Nanda said, adding the company was interested in having a partnership only with an enterprise that was already into mining or related activity in Tanzania.

One of the NMDC Iron ore mining in India
NMDC has also been exploring the possibilities for gold mining in the Singhbhum and Ranchi districts of Jharkhand for some time. It is already into diamond mining.

In 2010-11, it produced 10,865 carats worth. Sales were worth Rs 12.9 crore (of 18,421 carats). It is also exploring for more diamonds in Andhra Pradesh and Madhya Pradesh.

  

Sources: Smart Investor,www.smartinvestor.in,reported by Prashanth Chintala in Hyderabad 27 Jan 2012
Share on Google Plus

About Abduel Elinaza

This is a short description in the author block about the author. You edit it by entering text in the "Biographical Info" field in the user admin panel.