Indian group Tata Steel sells stake in Riversdale Mining to Rio Tinto group

20 June 2011

New Delhi, India, 20 June – Indian group Tata Steel has sold its 26.27 percent stake in Australian mining group Riversdale Mining to Rio Tinto for 1.06 billion Australian dollars, the group said in a statement published Thursday in New Delhi.

After noting that the sale had led to 100% profit in less than four years after its first acquisitions, the group said it did not plan to keep any stake in Riversdale Mining, whose shares will no longer be listed on the Australian stock exchange, unless there was a partnership agreement with Rio Tinto.

Anglo-Dutch mining group Rio Tinto owns 73.2 percent of Riversdale Mining, a company that has coal concessions in Mozambique, at the Benga and Zambeze projects, with estimated reserves of 13 billion of tonnes of coal.

However, Tata Steel plans to keep its 35 percent stake in Riversdale Energy (Mauritius) Ltd, a partnership set up in 2009 to explore the Benga coal project. (macauhub)