ICVL to buy Rio Tintos coal assets in Mozambique

Written by fe Bureau | New Delhi | Updated: Jul 31 2014, 05:33am hrs
International Coal Ventures (ICVL), the joint venture of state-owned entities SAIL, CIL, RINL, NMDC and NTPC, has finalised the acquisition of Rio Tintos operating coal mine and coal assets in Mozambique for an undisclosed amount.

Rio Tinto, the Australian mining giant, earlier acquired these producing coal assets from Riversdale Mining in 2011. The mine produces prime hard coking coal and thermal coal that could become a long-term captive source of a critical raw material for steel-making. Currently, India is largely dependent on imports to meet the coking coal requirements of domestic steel plants.

The acquisition is a significant and historic development towards assuring long-term coking coal security as Indian steel companies need higher input of raw material to fuel their growth, CS Verma, chairman, SAIL and ICVL, said while signing the agreement.