Mozambican government examining sale of Rio Tinto group assets

11 August 2014

The sale of Mozambican assets of the Rio Tinto mining group to an Indian group is being analysed, says Mozambican Mineral Resources Minister Esperança Bias, indicating that the government has received no official information to date.

“Formally I don’t know how much Rio Tinto earned in the deal, but you can be sure that whatever amount is verified will be taxed for capital gains,” Bias said, cited by the Maputo daily Notícias.

The Rio Tinto group recently announced that it had reached agreement to sell Rio Tinto Coal Mozambique to International Coal Ventures Private Limited (ICVL) for US$50 million.

Rio Tinto Coal Mozambique controls Rio Tinto’s coal assets in the Tete region of Mozambique, specifically the Benga mine (65 percent stake), the Zambeze mining concession and Tete Leste exploration licences and associated coal exploration licences, as well as Benga Energia.

ICVL is a consortium set up in India with the mission of acquiring coal and coal assets abroad, mainly to meet coal needs of the companies behind ICVL.

ICVL is comprised by some of the largest state-owned corporations in India: the Steel Authority of India Limited, Coal India Limited, RashtriyaIspat Nigam Limited, National Minerals Development Corporation Limited and National Thermal Power Corporation Limited. (macauhub/MZ)