Wuhan Iron and Steel 800 million U.S. dollars acquisition of 40% stake in Mozambique coal mines

Thursday  June 23, 2010

Australia's Riversdale Mining to 800 million U.S. dollars of the price, the Zambezi in Mozambique (Zambeze) 40% of the shares of coal sold to China's third largest steel company Wuhan Iron and Steel Group.

Under the agreement, Wuhan Iron and Steel set has 10 Australian dollars per share deal price was Riversdale8% of the shares.

Riversdale Mining Company 23, said in the statement, the group also has the right to market price to buy the Zambezi at least 40% of the coking coal production, and the right to buy another called the Bangladesh (Benga) at least 10% of coking coal reserves .

Riversdale Mining Company CEO 迈克尔奥基 husband (Michael O'Keeffe) said in a statement, "and the Chinese partners through joint ventures, we get the development of coal mines and coal mines to buy some products Zambezi money."

The company also said the valuation of the agreement is wholly acquired Zambezi value of hard coke coal is 20 million.

As predicted the next few years will become an increasingly high-quality coking coal supply shortages, the world's largest steel companies invest billions to buy shares in coal mines, to ensure access to coal, iron and steel enterprises is the key to future production.

Wuhan Iron and Steel Group believes that the use of the enormous development of Mozambique coking coal resources, can supply in southern China, and Brazil's steel demand for new steel plant. Wuhan Iron and Steel Group has also developed the iron ore mine in Madagascar.