Tata Steel Friday announced the acquisition of a 35 percent stake in Australian firm Riversdale Mining Ltd.`s coal project in Mozambique for Australian $100 million (about US $85 mn). Riversdale Mining Limited, incorporated in 1986, is listed on the Australian Stock Exchange.
Riversdale Ltd. - Australia
With this, Tata Steel becomes one of the strategic investors in the project that is fully owned by Riversdale through its subsidiary.
`This partnership gives Tata Steel 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,` said B. Muthuraman, managing director, Tata Steel.
Michael O`Keeffe, CEO and chairman of Riversdale, added: `They (Tata Steel) are an ideal strategic partner for Riversdale, and offer our shareholders the most efficient way to realise value from the development of Riversdale`s world class projects.`
Here You should not forget that Tata steel is the world`s sixth largest steel-maker, which recently completed acquisition of the Anglo-Dutch steelmaker Corus Group for about $12 billion.
