Photo: Mint
Photo: Mint

Tata Steel to sell stake in South African iron ore mine to Switzerland’s IMR for $25.6 million

Tata Steel said it had entered into an agreement with IMR Asia Holdings Pte. Ltd to sell Black Ginger 461 Pty. Ltd to IMR Asia Holdings Pte Ltd

Mumbai: Tata Steel Ltd will sell a majority stake in an iron ore mine in South Africa to IMR Metallurgical Resources AG, a Switzerland-based metals and mining group, for 366 million South African Rand (or $25.6 million or about 188 crore), the Indian steel maker said in a stock exchange filing.

TS Global Minerals Holdings Pte Ltd, a subsidiary of Tata Steel, has entered into an agreement with IMR Asia Holdings Pte Ltd, a subsidiary of IMR Metallurgical, to sell its entire stake in step down subsidiary Black Ginger 461 Pty Ltd, which in turn holds 64% in Sedibeng Iron Ore Pty Ltd, South Africa, which is the operating company, the company said in the filing.

The proceeds from the sale will factor in adjustments for working capital and closing cash balance, Tata Steel said. The mining operations reported a revenue of Rs839.86 crore in the financial year 2017-18. The transaction is expected to be closed in around 12 months.

IMR is an international trading company based in Switzerland involved in the global trading, marketing and financing of a wide variety of bulk commodities like steam, coking coals, iron ore, and iron and steel products, with offices in Switzerland, China and the United Kingdom.

Tata Steel has operations in 26 countries and commercial presence in 50 countries, with a steel production capacity of 27.5 million tonnes per annum. It had a revenue of 60,519 crore in the financial year ended March 31, 2018, and earned a profit of 2318 crore on a quarterly revenue of 16,405 crore for the quarter ended June 30, 2018.