Tata Steel to buy 35% stake in Riverseale coal project
Tata Steel and Riverseale Mining Ltd enter into an MoU for strategic investment in the Mozambique coal project.business Updated: Aug 03, 2007 22:37 IST
Tata Steel on Friday signed an accord with Riverseale Mining Ltd to acquire a 35 per cent stake in its Mozambique coal project for $100 million (Rs 400 crore).
"Tata Steel and Riverseale Mining Ltd, listed on the Australian Stock Exchange, have entered into a memorandum of understanding for strategic investment in Riverseale's Mozambique coal project by acquiring a 35 per cent stake in it for a sum of $100 million dollars," a Tata Steel spokesperson told PTI.
Tata Steel is the world's sixth-biggest steel maker and this is the company's second major deal this year after the takeover of Anglo-Dutch steel maker Corus Group for around $12 billion.
This is the also the second acquisition by a Tata group company in the coal sector after Tata Power's deal to buy a 30 per cent stake in two coal mines in Indonesia for $1.1 billion early this year.