Tata Steel acquires 35% in Riversdale's coal project for Rs 345 cr

New Delhi, Aug 3 (UNI) Tata Steel Ltd today said it has acquired 35 per cent stake in Australia-based Riversdale's coal project for Rs 345 crore.

Riversdale Mining Ltd and Tata Steel have entered into a memorandum of understanding (MoU), whereby the company will become a strategic investor in Riversdale's Mozambique Coal project, it said in a statement.

The hard coking coal derived from the project will be supplied to the Corus facilities in the UK and Europe and also to the company's enhanced requirement in India in the future.

''The MoU with Riversdale is in the Tata Steel's stated strategy of progressing towards raw material security for its global business. This partnership gives us an opportunity to jointly explore part of a large coal basin which could prove to be a potential source to meet part of the raw material requirement and enhance the long term competitiveness of the global operations,'' Tata Steel Managing Director B Muthuraman said.

The Mozambique Coal project includes the coal tenements of premium hard coking coal in Benga and Tete, located in the Tete province in Mozambique, which are fully owned by Riversdale through its subsidiary.

The Benga and Tete tenements together cover an area of 24,960 hectares.

Riversdale is presently conducting a scoping study which is likely to be completed in August 2007. The definitive agreements are expected to be finalised and executed by November 30, 2007, the statement said.

UNI