Indian consortium ICVL poised to buy mining assets in Mozambique

25 July 2014

The sale of coal mines explore din Mozambique by Anglo-Australian group Rio Tinto to Indian consortium International Coal Ventures Private Limited (ICVL) is expected to go ahead soon, a government official involved in the negotiations said in New Delhi.

Cited by the Wall Street Journal, the unnamed official said he expected that both sides would sign the deal within “three or four days.”

If the deal goes ahead, this will be ICVL’s first acquisition since it was set up in 2009 to buy foreign mining assets.

ICVL plans to buy the 65-percent stake owned by Rio Tinto Coal Mozambique in the Benga mining project as well as the 100 percent stake sit owns in two other mines, known as the Zambeze and Tete Oriental projects.

Rio Tinto, which ahs been raising funds from the sale of non-core assets and others that are performing poorly, acquired the mines in 0211 when it pair US$3.7 billion for Australian company Riversdale Mining Ltd.

The ICVL consortium, made up of state companies Coal India, Steel Authority of India, National Thermal Power Corporation (NTPC), National Mineral Development Corporation (NMDC) and Rashtriya Ispat Nigam Limited (RINL), was set up to acquire and explore coking coal, other minerals and bioenergy. (macauhub/MZ)