Tata Steel acquires stake in Riversdale''s Mozambique coal project

Mumbai: Tata Steel has acquired a 35 per cent stake in Australian firm Riversdale Mining Ltd.''s coal project in Mozambique for Australian $100 million (about $85 million).

Tata Steel would now be a strategic investor in the project that is fully owned by Riversdale through its subsidiary, Tata Steel said.

"This partnership gives Tata Steel an opportunity to jointly explore part of a large coal basin which could prove to be a potential source to meet part of the raw material requirement and enhance the long term competitiveness of the global operations," B. Muthuraman, managing director of Tata Steel, said in a statement.

"They (Tata Steel) are an ideal strategic partner for Riversdale, and offer our shareholders the most efficient way to realise value from the development of Riversdale''s world class projects," Michael O''Keeffe, CEO and chairman of Riversdale, added.

Riversdale Mining Limited, incorporated in 1986, is listed on the Australian Stock Exchange. Tata steel, which recently completed acquisition of the Anglo-Dutch steelmaker Corus Group for about $12 billion, is the world''s sixth largest steel-maker.