Tata inks $ 88.2 mn JV with Riversdale Mining

New Delhi, Nov 30: Tata Steel Ltd today said it has entered into a Joint Venture (JV) at about 88.2 million dollars to acquire a 35 per cent project interest with Riversdale Mining Ltd to develop a hard coking and thermal coal project in Mozambique.

Under the JV Tata secures a key position to develop the Mozambique Coal Project, as well as a 40 per cent share of the off-take for coking coal, said a statement.

Tata will also have the option to participate above this level of tonnage, and may participate with Riversdale in future opportunities on Riversdale's surrounding tenements.

The JV comprises two licences (the Benga and Tete licences) and covers an area of 24,960 hectares (about 96.7 square miles).

Riversdale Mining holds a total acreage of over 290,000 hectares (1,120 square miles) in Mozambique.

The coking coal derived from this project will be supplied to the Tata Steel Group's facilities in Europe, Asia and elsewhere.

Tata Steel Ltd Managing Director B Muthuraman said this investment is a significant step in the company's initiatives for raw material security.

It gives Tata Steel an opportunity to participate in the development of the region as a coal resource for its global operations. This will enhance Tata Steel's long term competitiveness,'' he said.

UNI