BackGremach acquires controlling stake in 11 coal mines in Africa
Gremach acquires controlling stake in 11 coal mines in Africa
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Mumbai: Domestic equipment hiring firm Gremach Infrastructure Equipments and Projects on 25 September said it has acquired 75% stake in 11 coal mine licenses in Mozambique in Africa for an undisclosed amount.
“These acquisitions will make Gremach one of the most important players in prime hard coking coal mine in the world," Gremach Infrastructure MD Rishi Raj Agarwal said.
The said coal mines have an aggregate 13,520 hectares (about 13,52,00,000 sq mts) in a prime region of Africa.
“The 11 licences are very close to existing Companhia Vale do Rio Doce (CVRD) mines where hard prime coking coal has already been found," Agarwal added.
Gremach would start prospecting the area in October this year which is expected to be completed by mid 2008. Expected reserves in the above mines are more than 200 million.
There is a global shortage of hard coking coal and this will add value to the profitability of the company, the company informed in a filing to the Bombay Stock Exchange.
These licenses have been purchased from a Mozambique Company -- Osho Mozambique Coal Mining Limitada, which has registered office at Maputo.
Earlier, JSW group, Ispat Industries and Tata Steel have made acquisitions of coal mines in Mozambique.
Tata Steel had acquired 35% stake in Australian firm Riversdale Mining Ltd’s Coal Project in Mozambique for about $85 million.
Companhia Vale do Rio Doce (CVRD), the world’s largest iron ore producer is investing two billion dollar in Mozqmbique that may develop the southern hemisphere’s biggest mine for the black gold, the company said.
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