Sesa Goa to buy 51 % stake in Liberian iron ore mining co for Rs400 crore
08 August 2011
Vedanta Group firm Sesa Goa today said it has agreed to buy a 51 per cent stake in Western Cluster Ltd (WCL), a Liberian iron ore mining company, for a cash consideration of $90 million (Rs400 crore).
WCL will develop the Western Cluster iron ore mining project in Liberia, which covers mining of deposits and setting up transportation and shipping infrastructure for its export.
The acquisition by Sesa Goa, India's largest iron ore exporter, is subject to ratification by the West African nation's legislature.
WCL's mining assets is estimated to be over 1 billion tonnes (~330 mt Saleable Product) and has close proximity to existing port infrastructure and access to land for railway corridor.
With this acquisition, Sesa Goa will become a significant player in the upcoming West African Iron Ore hub.
Sesa Goa will establish a strong presence in the upcoming iron ore hub catering to seaborne iron ore trade.