Sesa Goa to buy Western Cluster for $90 million
Sesa Goa will buy the majority stake in WCL from its Delaware, US-based owner Elenilto Minerals & Mining LLC, it said in an exchange statement.
By ET Bureau | Updated:
NEW DELHI: Sesa Goa, the iron ore mining arm of Vedanta Resources, on Saturday said it has completed a transaction to acquire a controlling stake in Liberia’s Western Cluster Iron Ore project for $90 million (about Rs 405 crore).
Sesa has bought 51% stake in the project estimated to hold reserves of over 1 billion tonnes of iron ore, from Delaware-based Elenilto Minerals & Mining LLC. Elenito won the rights to develop the deposits under an agreement with the Liberian government in 2009.
"We are highly delighted with this opportunity to consolidate our iron ore business. The Western Cluster Project presents an excellent opportunity for developing a large integrated mining operation and establish our presence in Liberia and Africa," said Sesa Goa managing director P.K. Mukherjee.
With this acquisition, Sesa Goa will become a major player in the upcoming West African iron ore hub. The company has attractive mining assets with long mine-life and access to potential iron ore resources of over 1 billion tonnes, said a Sesa Goa statement, adding that close proximity to existing port infrastructure and access to land for railway corridor, will also help in developing the project.
Sesa has bought 51% stake in the project estimated to hold reserves of over 1 billion tonnes of iron ore, from Delaware-based Elenilto Minerals & Mining LLC. Elenito won the rights to develop the deposits under an agreement with the Liberian government in 2009.
"We are highly delighted with this opportunity to consolidate our iron ore business. The Western Cluster Project presents an excellent opportunity for developing a large integrated mining operation and establish our presence in Liberia and Africa," said Sesa Goa managing director P.K. Mukherjee.
With this acquisition, Sesa Goa will become a major player in the upcoming West African iron ore hub. The company has attractive mining assets with long mine-life and access to potential iron ore resources of over 1 billion tonnes, said a Sesa Goa statement, adding that close proximity to existing port infrastructure and access to land for railway corridor, will also help in developing the project.
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