Monday, 17 Jan 2011
Ncondezi Coal Ltd, seeking to build a coal mine in Mozambique, said that it’s studying acquisitions as interest in the African nation rises following the AUD 3.9 billion bid for Riversdale Mining Ltd last month.
Mr Graham Mascall CEO of Ncondezi Coal said that “Now that we’re established in Mozambique, we have a very good profile with the government, with other industry players, with people interested and we’re getting a lot of in-bound opportunities which we’d like to have a look at. We’re looking predominantly in Mozambique.”
Mr Mascall said that “Mozambique has really grown in its interest for people because of the size of the coal resources I would be surprised if some of the thermal coal buyers in India, some of the steelmakers in China, aren’t looking at us and keeping a watching brief.”
Ncondezi holds four exploration licenses in the Mozambique province of Tete, adjacent to projects owned by Vale, the world’s biggest iron ore exporter and Riversdale. Ncondezi plans to start output from its USD 376 million thermal coal mine as early as 2013 and yesterday sold USD 36.5 million of new shares to buy out a founding holder and study merger and acquisition opportunities.
Rio Tinto Group, the world’s third largest mining company, last month agreed to buy Riversdale to secure reserves of coking coal. Rio’s bid has sparked interest in Mozambique’s mining industry, which has already attracted investment from Brazil’s Vale SA and BHP Billiton Ltd, the world’s two biggest mining companies.
Sourced from Bloomberg
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