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.

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).

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"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.