Gremach Infrastructure acquires 75-per cent controlling stake in 11 coalmines in Mozambique
By Our Corporate Bureau | 25 Sep 2007
Construction and earthmoving equipment rental company, Gremach Infrastructure Equipments & Projects Ltd has acquired a 75-per cent controlling-stake in 11 coalmine licenses in Mozambique from Osho Mozambique Coal Mining Limitada.
With this acquisition, Gremach says, it has joined the ranks of the handful of Indian companies like JSW, the Tata Group and Gujarat NRE Coke, with captive mining assets overseas.
The mines, with an aggregate 13,520 hectares (approximately. 135,200,000 sq metres), are situated in the in the coal-rich Moatize region of the African state of Mozambique. The region falls in the Karoo basin, which is recognised as Africa''s prime area for hard coking coal, which is in short supply globally.
Gremach plans to start prospecting the area from next month onwards till mid 2008. The expected reserves in the mines are more than 200 million.
Rishi Raj Agarwal, managing director, Gremach Infrastructure, said, "These 11 licences are very close to the Companhia Vale do Rio Doce (CVRD) mines and some of them are having common boundary with CVRD licences where hard prime coking coal has already been found. These strategic acquisitions will make Gremach one of the most important players in prime hard coking coal mine in the world".
Companhia Vale do Rio Doce (CVRD), the world''s largest iron ore producer is investing a $2 billion in Mozqmbique that may develop the southern hemisphere''s biggest mine for black gold.
"To take advantage of government incentives, many Indian companies are working in coal mining business in Mozambique. JSW group, Ispat Industries and Tata Steel have recently made acquisition of coalmines in Mozambique. Tata Steel has acquired 35 per cent stake in Australian firm Riversdale Mining Ltd.''s Coal Project in Mozambique for Australian $100 million (about $85 million).
Gremach
group company Austral Coke & Projects Ltd. is a manufacturer of low ash met
coke and this acquisition will give raw material security which is a normal practice
in Australia where Japanese and Chinese have invested for in-house captive consumption.
