Tata Steel, on Friday, signed an accord with Riversdale Mining Ltd to acquire 35 per cent stake in its Mozambique coal project for Australian $100 million (Rs 400 crore).

A Tata Steel spokesperson said that “Tata Steel and Riversdale Mining Ltd, listed on Australian Stock Exchange, have entered into an MoU for strategic investment in Riverseale’s Mozambique coal project by acquiring 35 per cent stake for a sum of  Australian $100 million.”  This is the second major deal this year after takeover of Anglo-Dutch steelmaker Corus Group Plc for around US$12 billion.

Second major acquisition
This is the also the second acquisition by a Tata Group company in coal sector after Tata Power’s deal to buy 30 per cent stake in two coal mines in Indonesia for US$1.1 billion early this year. 
The coal produced from this project would be supplied to Corus facilties in the UK, Europe and also to India in future.

“The definitive agreements are expected to be finalised and executed by November this year. The MoU with Riversdale is in Tata Steel’s stated strategy of progressing towards raw material security for its global business. This partnership gives Tata Steel an opportunity to explore large coal basin, which could enhance long-term competitiveness of global operations,” Managing Director B Muthuraman said.

Riversdale is presently conducting a scoping study which is likely to be finalised by this month, the release added.