INDIA BUSINESS WORLD - JULY - AUGUST - 2007
The Month that was ...

TATA STEEL ACQUIRES 35% STAKE IN MOZAMBIQUE COAL CO. RIVERSDALE MINING FOR RS 340 CR

TATA Steel has acquired a 35% stake in a coal-mining project in Mozambique. The country's largest private sector steelmaker has picked up a strategic stake in Riversdale Mining, a company listed on the Australian Stock Exchange, for A$100 million (Rs 340 cr).

The two firms have entered into an MoU by which Tata Steel will become a strategic investor in Riversdale's Mozambique coal project. The hard coking coal derived from the project will be supplied to Corus facilities in the UK and Europe and also to Tata Steel's enhanced future requirements in India.

The Mozambique coal project includes coal tenements of premium hard coking coal in Benga and Tete, located in the Tete province in Mozambique, that are fully owned by Riversdale through its subsidiary. The Benga and Tete tenements cover 24,960 hectares. "Riversdale is conducting a scoping study that is likely to be completed in August 2007," a Tata Steel statement said. Definitive agreements are expected to be finalised and executed by November 30, 2007.

Tata Steel MD B Muthuraman said: "The MoU with Riversdale is in line with Tata Steel's strategy of moving towards raw material security for its global business. This partnership gives Tata Steel an opportunity to jointly explore part of a large coal basin which could prove to be a potential source to meet part of the raw material requirement and enhance the long-term competitiveness of the global operations."

Riversdale CEO and chairman Michael O'Keeffe said: "The MoU with Tata Steel culminates a lengthy and thorough search for a strong strategic investor. Tata Steel is an ideal strategic partner for Riversdale."