Nava Bharat buys 65% stake in Zambia’s Maamba Collieries

Nava Bharat buys 65% stake in Zambia’s Maamba Collieries
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First Published: Mon, Dec 21 2009. 11 02 PM IST
Updated: Mon, Dec 21 2009. 11 02 PM IST
Hyderabad: Nava Bharat Ventures Ltd (NBVL) has acquired a 65% stake in Maamba Collieries Ltd (MCL) from ZCCM-IH, the investment holding company of the Zambian government, for an initial $26 million (Rs120 crore).
Maamba Collieries owns Zambia’s largest coal mine, which holds about 65 million tonnes of washed high-grade coal and an equivalent quantum of low-grade coal.
As a part of the deal, Nava Bharat will help ZCCM-IH optimize mine operations and establish a 300MW power project by using low-grade coal from Maamba Collieries. Of the overall investment of $550 million, Nava Bharat will invest $108 million as its equity contribution and ZCCM will invest $57 million.
The Hyderabad-based Nava Bharat signed the deal through its Singapore-based subsidiary, Nava Bharat (Singapore) Pte Ltd. Shares of the company rose 5.62% to end at Rs399.10 on the Bombay Stock Exchange on Monday.
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First Published: Mon, Dec 21 2009. 11 02 PM IST