Sesa Goa close to win $1.6 bn project in Liberia

MUMBAI: Anil Agarwal’s Sesa Goa is close to getting development rights for $1.6 bn iron ore project in Liberia called the Western Cluster Project, sources with direct knowledge said.

Sesa Goa is looking at investing $600 mn on the project over next three years. Since a mining concession right is being transferred in this deal, the upfront payment could be a token amount, sources said.

Liberia awarded Israel’s Elenilto Mineral Mining Ltd. the rights to develop the $1.6 billion Western Cluster iron ore project earlier but ran into trouble as reports suggested that the Israeli company lacked the financial and technical expertise for the project.

Now, the Liberian government is in talks with Sesa Goa for transferring the mining rights.

For Sesa Goa which is one of the largest iron ore producers in India it will be the first venture overseas, the company had made an acquisition in the domestic market. Sesa Goa’s official spokesperson did not respond to any query on this development.