International Coal Ventures Ltd (ICVL), a consortium of Indian state-held companies, plans to present in the near future a US$200 million bid to purchase the three mining assets held by the Rio Tinto group in Mozambique, reports the Indian press.
The Anglo-Australian Rio Tinto group controls 100 percent of the Zambeze and Tete Oriental coal projects and 65 percent of the Benga mine, where India’s Tata Steel group holds the remaining 35 percent. All are located in Tete province.
“ICVL held preliminary talks with officials from the group in Mozambique and should submit a bid of US$200 million within 15 days to buy all of Rio Tinto’s assets,” a source from the Steel Ministry told the Press Trust of India news agency.
The source added that the mines have estimated reserves of 200 million tons of coking and steam coal and that “it usually costs US$1 million to buy a mine that has a million tons of coal.”
In November 2007 Tata Steel bought a 35 percent stake in the Benga mine from the Riversdale Mining Company, which then controlled the mine. Riversdale was acquired by the Rio Tinto group in April 2011. (macauhub/MZ)