Company: MIM

State: BRISBANE, QUEENSLAND

Sector: RESOURCE

Since the mid 1980s, major Australian miner MIM has been exporting coal
to India, mostly coking coal from its Queensland mines. Its major
customers include the Steel Authority of India Limited and Vizag Steel.
India is now MIM's single largest market for hard coking coal, taking
just under 3 million tons per year. Since 1985, MIM also has supplied
India steaming coal via one off contracts with traders rather than
directly to customers.

MIM also sells proprietary smelting and refining technology to the
Indian base metal industry. For example, Sterlite's copper smelter in
Southern India uses MIM's ISASMELT technology and Sterlite Copper and
Birla Copper use IsaProcess copper refining technology. MIM also purchases
Indian mining and refining related consumables, but to date this business
has not produced any significant long term relationships. From its long
experience in trading with India, MIM highlights the need for a trusted
and committed representative in India. Choosing a representative cannot be
treated as a 'set and forget' arrangement; the Australian party must
collaborate closely with its representative, effectively managing the
business to achieve objectives. Australian businesses must understand
fully the local business environment, particularly dealing with government
agencies. Considerable patience and perseverance are critical in such
dealings. Australian firms need to learn to negotiate the processes
involved and understand how persistence and building good long term
relationships are essential in working through issues that might initially
cause difficulties.

In looking to the future, MIM considers Indian business opportunities
promising. Local steel production and consumption per capita are low in
world terms and India's ongoing industrialisation should continue to
boost demand and improve opportunities for supplying coking coal to Indian
steel producers. Indian thermal coal consumers also appreciate the
benefits of blending higher quality Australian steaming coal with Indian
product to improve operational efficiency and reduce maintenance. MIM also
is pursuing further opportunities to install its technologies in India.
These trends and opportunities make India an important part of MIM' s
future plans.

Source, MIM Holdings Limited, 2001