Naveen Jindal-led Jindal Steel and Power Ltd (JSPL) is hiking its stake in Australian junior iron ore miner Apollo Minerals by buying an additional 2.45 per cent for about AS$0.4 million (Rs2.20 crore).
JSPL, which already holds a 9.25-per cent stake in the Sydney-based company, will buy an additional 10 million shares for A$0.4 per share, taking its total holding to 11.70 per cent.
Apollo Minerals said that it will use the proceeds for the exploration and development of its Commonwealth Hill Iron and the Mount Oscar projects in South Australia.
Last May, JSPL had acquired 9.2-per cent stake in 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, 19 per cent in Gujarat NRE Coking Coal, and owns six coal exploration permits in Queensland.
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 the highly prospective Gawler Craton in South Australia.