International Coal Ventures ltd (ICVl), a consortium consisting of Steel Authority of India ltd (SAIl), Coal India ltd (CIl), Rashtriya Ispat Nigam ltd (RINl), NTPC and NMDC, has signed the pact with global mining major Rio Tinto, to acquire its three coal assets in Mozambique for $50 million. The deal is ICVl's first acquisition in five years of its existence.
The Pioneer had exclusively reported on July 4 about ICVl having locked the deal, after a delegation comprising of the heads of the four State-owned entities and Steel Ministry officials had visited Mozambique late last month to wrap up all the related formalities with Rio Tinto as well as the Government of the African nation.
ICVl signed the pact on July 28 to buy Rio Tinto's 65 per cent stake in Benga mine as well as its 100 per cent stake each in Zambeze and Tete East coal assets. All the three assets are estimated to be having reserves worth 2.6 billion tonnes, a statement issued by the consortium said.
Among the three properties, only the Benga mine is operational and according to sources, its capacity can be taken to 15 million tonnes from the existing 5 million tonnes. Tata Steel owns the remaining 35 per cent stake in it. The ICVl statement further said that Benga produces prime hard coking coal and thermal coal.