Gremach may sell 10% in Mozambique coal JV
Gremach Infrastructure on Wednesday said it is in talks to sell 5-10% of its equity stake in a Mozambique coal joint venture, where it owns about 75% stake.
By ET Bureau |
MUMBAI: Gremach Infrastructure, a Mumbai-based mining company, on Wednesday said it is in talks to sell 5-10% of its equity stake in a Mozambique coal joint venture, where it owns about 75% stake. ���We are talking to three steel companies for diluting our stake and the proceeds will be used to develop the mines,��� said MD Rishi Raj Agarwal, adding that he expects about $50 million from the stake sale.
Gremach had earlier bought 75% in the Mozambique venture in Moatize which has estimated reserves of 200 million tonnes. The mines are very close to existing mines of Companhia Vale do Rio Doce where hard prime coking coal has already been found, said Mr Agarwal. Coking coal is a key input for steelmaking like iron ore. Group company Austral Coke makes low ash met coke and had recently acquired 95% stake through subsidiary Astra Mining.
Gremach had earlier bought 75% in the Mozambique venture in Moatize which has estimated reserves of 200 million tonnes. The mines are very close to existing mines of Companhia Vale do Rio Doce where hard prime coking coal has already been found, said Mr Agarwal. Coking coal is a key input for steelmaking like iron ore. Group company Austral Coke makes low ash met coke and had recently acquired 95% stake through subsidiary Astra Mining.
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