Sesa Goa to buy 51% in Liberian iron ore firm for $90m
Sesa Goa, a subsidiary of Vedanta Resources, today said it will buy 51% stake in an iron ore making firm in Liberia for USD 90 million in an all-cash deal.
August 08, 2011 / 08:47 IST
Sesa Goa, a subsidiary of Vedanta Resources, today said it will buy 51% stake in an iron ore making firm in Liberia for USD 90 million in an all-cash deal.
"Sesa Goa has agreed to acquire 51% stake in Western Cluster Ltd, Liberia for a cash consideration of USD 90 million," the Goa-based iron ore miner said in a filing to the Bombay Stock Exchange (BSE).The acquisition, which is subject to ratification by the Liberia Legislature, is expected to help the Anil Agarwal-led Vedanta Resources' subsidiary to become a significant player in the West African iron ore hub.Located in Western part of Liberia and spread over 270 sq km area, the company has assets having long mine-life with an estimated reserve of over 1.05 billion tonne iron ore. The deposits are located close to the coast along Monrovia to Mano River."We are highly delighted with this opportunity to consolidate our iron ore business. The Western Cluster Project presents an excellent opportunity for developing a large integrated mining operation and establish our presence in Liberia and Africa," Sesa Goa managing director PK Mukherjee said.Western Cluster has concessions to mine the Mano River Iron Ore Deposits, the Western portion of the Bomi Hills Iron Ore Deposits and the Bea Mountain Iron Ore Deposits.Western Cluster is owned by Elenilto Minerals and Mining LLC, which operates large-scale iron ore, gold, copper and other minerals exploration and mining activities in Africa and Europe. Elenilto has more than 100 exploration and mining licences with over 10,000 sq km area in Africa and Europe. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
