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Sesa Goa, a Vedanta Group Company, is close to acquiring development rights to mine iron ore in Liberia, West Africa
. The mineral potential of the Western Cluster is divided among three deposits – Bomi Hills, Bea Mountain and Mano River.
$600-m investment
The company is expected to get the mining concession of the $1.6 billion Western Cluster Project and invest about $600 million (Rs 2,700 crore), a source said.
The upfront payment may be marginal as only the concession rights are being transferred in Sesa Goa's favour, he said. Sesa Goa has cash and cash equivalent of Rs 2,246 crore as of June 30.
A Vedanta Group spokesperson refused to comment on the development.
Sesa Goa has been scouting for mining opportunities abroad to shore up its mineral resources, which currently stand at 306 million tonnes.
Top ore producer
The company is one of the largest iron ore producer and exporter in India and has mines in Karnataka and Goa, besides which, it has a 280,000 tonnes a year metallurgical coke plant and a 250,000 tpa pig iron plant in Goa.
The company recently acquired Bellary Steel and Alloys, which was in the process of constructing a steel plant of 0.5 mtpa. Bellary Steel has free land holding of 700 acres for future expansion.
“We are always exploring the possibility of acquiring iron ore mines. The company is considering three to four proposals for acquisition of mines both in India and abroad,” Mr P.K. Mukherjee, Managing Director, Sesa Goa, told Business Line recently.
Western cluster project
In 2009, the Liberian Government awarded the Western Cluster Project to Israel-based Elenilto Mineral Mining.
Since there has been no significant progress so far, it has initiated talks with Sesa Goa for the transfer of mining rights.
The Western Cluster project consists of three deposits and two mines that were closed in 1976 and 1985.
The Cluster was first awarded to a South African mining company, Delta, but a rebid was ordered after slow progress.
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