In a major breakthrough, International Coal Ventures Pvt ltd (ICVl), the joint venture of SAIl, CIl, RINl, NMDC and NTPC has finalised the takeover of Rio Tinto’s operating coal mine and coal assets in Mozambique. The mine was acquired by Rio Tinto from Riversdale Mining ltd in 2011.
The mine produces prime hard coking coal and thermal coal. The agreement for acquisition was signed on July 28 in New Delhi by Ajay Mathur, CEO of ICVl and George Hartley, Director M&A, Rio Tinto in the presence of CS Verma, Chairman, SAIl and ICVl and other senior functionaries. Investec Bank PlC, london was the financial advisor to ICVl in this acquisition.
The operating coal mine comes with a state of the art wash plant and surface infrastructure with a potential to expand raw coal production from the current 5 Million tonnes per annum (Mtpa) to 12 Mtpa. There is significant potential for tapping CBM from the acquired coal resources, said a press communiqué sent.
“The Mozambique acquisition by ICVl is a significant and historic development towards assuring long-term coking coal security as Indian steel companies need higher input of raw material to fuel their growth. Mozambique has the geographical advantage of being in proximity of India. This acquisition gives the steel companies under the Ministry of Steel a strong foothold in this sought after coal basin,” CS Verma said.
