Naveen Jindal-led Jindal Steel and Power Ltd (JSPL), part of the $15-billion diversified O P Jindal Group, yesterday acquired a 9.25-per cent stake in Australian junior iron ore explorer Apollo Minerals for A$1 million (Rs5.30 crore).
Having limited its investments in Australia to coal mines, this is the first investment by JSPL in iron ore in the country. JSPL holds a 27.27-per cent stake in coal miner Rockland Richfield and also owns six coal exploration permits in Queensland.
"JSPL is making a significant investment in Apollo. This initial investment, facilitated by Bligh Capital Pty Ltd, will provide JSPL with 9.25 per cent of the total issued shares in Apollo," the New South Wales-based company said in a statement.
Australian Stock Exchange-listed Apollo Minerals owns two undeveloped iron ore projects, the Mount Oscar Project in the Pilbara region of Western Australia and the Commonwealth Hill Project in South Australia.
The Mount Oscar Project is located 25km south of the port of Cape Lambert and close to proposed multi-user Ankatell Point port. Apollo Minerals has a total exploration target of 500 million tonnes of iron ore with 31-37 per cent Fe grade.
The Commonwealth Hill tenements are located near to some of South Australia's world-class uranium, iron ore and base metal projects including the iron oxide-copper-gold-uranium (IOCGU) deposits at Olympic dam and Prominent Hill.