ICVL to buy Rio Tinto's coal assets in Mozambique for $50m

Tags: Companies
State-owned International Coal Ventures Pvt Ltd (ICVL) has signed an agreement to buy Rio Tinto's coal assets in Mozambique for $50 million.

ICVL - a joint venture company of Steel Authority of India, Coal India, Rashtriya Ispat Nigam and NMDC - will buy the Tete East project and the Benga mine, which will give it captive coal mines.

Rio Tinto had bought these assets as part of acquisition of Riversdale Mining Limited in 2011.

The acquisition will be the first of ICVL since its inception in 2009.

"The sale is subject to certain conditions precedent and regulatory approvals. The transaction is expected to close in the third quarter of 2014," Rio Tinto said in a statement today.

During the transition to the new owner, Rio Tinto will continue to manage the mine to the highest safety and environmental standards. Rio Tinto's other assets in the country are unaffected by this transaction, it said.

EDITORIAL OF THE DAY

  • Right to reveal

    Delhi is India’s first state to announce a scheme for witness protection. But what about the witnesses in other states?

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

Urs Schoettli

New masters of the Financial Times

A few days ago, Japan’s leading financial daily Nihon Keizai ...

Anuja Sharma

Focus mindfully to get the result

Have you ever tried to light a fire using the ...

Gautam Gupta

Our fashion schools need to notch it up

“Creativity is the key to success and primary education is ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture