Tata Steel, which operates in 24 countries and commercial presence in over 50 countries, acquired an additional 7.3% equity stake in Riversdale Mining, a coal blocks in Mozambique, against USD 120.7 million. This increased the stake of Tata steel to 42.3% from 35% which was bought for USD 100 million.
Coal has been in tight supply for the current year since steel market ramped up capacities over the past couple of year and huge demand from China, due to Olympic, and India. While steel capacities start coming on stream, coal mines haven''t kept pace, leading to a tight supply situation. As a result most steelmakers to scout for coal mines overseas, mainly Australia, Indonesia and parts of Africa.
No comments:
Post a Comment