Indian Tata Steel ups stake in Riversdale

INDIAN steel company Tata Steel intends to take more than a 7% stake in African coal miner Riversdale Mining.
Indian Tata Steel ups stake in Riversdale Indian Tata Steel ups stake in Riversdale Indian Tata Steel ups stake in Riversdale Indian Tata Steel ups stake in Riversdale Indian Tata Steel ups stake in Riversdale

Courtesy Riversdale Mining.

Vivienne Ryan

Tata told the market on Monday it intended to buy a 7.3% stake in the Australian Securities Exchange-listed miner.

No strangers to each other, Tata and Riversdale entered into a joint venture last year, which saw Tata pay $100 million for a 35% interest in Riversdale’s Mozambique Benga and Tete coking coal projects and a 40% off-take agreement.

In a separate transaction, coal stalwart and founder of Australian coal miner Macarthur Coal, Ken Talbot, also increased his Riversdale stake, from 11.3% to 13.4%.

Talbot is the chief executive of the Talbot Group Holdings, which has coal interests in the United States.

Earlier this year, the Talbot Group took a 19.9% stake in Pennsylvania coal miner PBS Coals – which has plans to triple its capacity.

Riversdale operates a coal mine in South Africa’s Zululand coalfield and produced a 917,622-tonne run of mine coal for the year ending June 30.

Riversdale was trading up by nearly 7% at $9.09 in late afternoon trade.

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