The Wonarah deposit is Australia's largest known undeveloped phosphate rocks and the acquisition will help secure supplies of a critical raw material for the Indian fertiliser industry, NMDC said in a statement to the stock exchange.
India is the world's biggest importer of rock phosphate and ammonium phosphate fertilisers .
NMDC did not disclose the size of the project but the Australian Financial Review had pegged the Wonarah rock phosphate project at A$1.5 billion in a report this month.
State-run NMDC has been scouting for diversification opportunities to boost growth, including diamond and gold mining, and is building two steel plants in India.
Last month, it struck a deal with Australian miner Legacy Iron Ore to buy a 50 percent stake.
NMDC, which accounts for about 15 percent of India's iron ore production, is building a 3 million tonnes steel plant at Chhattisgarh in central India and is negotiating with Russia's Severstal for additional coal supplies for the plant.
It plans to spend 33 billion rupees ($736.1 million) for capacity expansion and the steel project this year, and is counting on its 172 billion-rupee cash hoard to fund acquisitions or investments.
Shares in Minemakers, which fell more than 3 percent before the announcement, pared losses and were trading down 1.09 percent at 0424 GMT on the Australian Stock Exchange.
NMDC's shares rose nearly 1.5 percent in a subdued Mumbai market.
Thanks & Regard,
Monindro Saha
Summer Intern @ DENIP CONSULTANT PVT LTD.
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