Indian firm National Mineral Development Corporation (NMDC) is in negotiations to acquire a controlling stake in Brazil’s Greystone Mineracao do Brasil, which is owned by Zamin Ferrous, for about $1bn.

Greystone holds six exploratory licences in the Bahia State of Brazil and is developing a $3bn iron ore project in Uruguay, reports the Economic Times.

According to sources, NMDC is conducting a technical, financial and legal due diligence assessment of the iron ore mines, reported to have reserves of 260Mt.

If the acquisition takes place, NMDC will develop the mines, construct a slurry pipeline and build rail infrastructure connecting the site to the nearest port.

The open pit Greystone deposit is of the lower ferrous content magnetite variety and will require the setting up of a beneficiation plant.