Saturday, 13 Aug 2011 | By Bloomberg
Bloomberg reported that Sesa Goa Limited and Elenilto Minerals & Mining LLC will jointly invest more than USD 2.6 billion in Liberia's Western Cluster Limited as rising demand for the steelmaking ingredient boosts prices.
Elenilto's share of investment in the iron ore company will be USD 77 million. The Liberian government will receive USD 41 million from the partnership after ratifying the Mineral Development Agreement.
Liberia, the West African nation rebuilding its economy after civil wars between 1989 and 2003, is expanding its iron ore industry after an increase in Asian demand pushed prices up 43% in 2010. OAO Severstal is developing the Putu ore project in the country, while Sable Mining Africa Limited said in June it acquired a stake in the Kpo Range exploration permit.
Sesa Goa, a unit of London listed Vedanta Resources Plc, said on August 7th 2011 that it would buy 51% of Western Cluster for USD 90 million. Western Cluster plans to develop a project that includes iron ore deposits and transport infrastructure to export the material.
According to The Steel Index, iron ore with 62% iron content arriving at China's Tianjin Port is trading at USD 177.80 a tonne. Prices have gained 4.5% in 2011.
Bloomberg reported that Sesa Goa Limited and Elenilto Minerals & Mining LLC will jointly invest more than USD 2.6 billion in Liberia's Western Cluster Limited as rising demand for the steelmaking ingredient boosts prices.
Elenilto's share of investment in the iron ore company will be USD 77 million. The Liberian government will receive USD 41 million from the partnership after ratifying the Mineral Development Agreement.
Liberia, the West African nation rebuilding its economy after civil wars between 1989 and 2003, is expanding its iron ore industry after an increase in Asian demand pushed prices up 43% in 2010. OAO Severstal is developing the Putu ore project in the country, while Sable Mining Africa Limited said in June it acquired a stake in the Kpo Range exploration permit.
Sesa Goa, a unit of London listed Vedanta Resources Plc, said on August 7th 2011 that it would buy 51% of Western Cluster for USD 90 million. Western Cluster plans to develop a project that includes iron ore deposits and transport infrastructure to export the material.
According to The Steel Index, iron ore with 62% iron content arriving at China's Tianjin Port is trading at USD 177.80 a tonne. Prices have gained 4.5% in 2011.
Posts
No comments:
Post a Comment