VCCircle

Indian companies are increasingly eyeing coal mines in Mozambique. After Tata Steel, now it's a lesser known infrastructure equipment company Gremach Infrastructure Equipments & Projects Ltd, that has dared to acquire mining licences in the African country. The Mumbai-based company Gremach has bought 75 per cent stake in 11 coal mine licences in Mozambique from Osho Mozambique Coal Mining Ltd. The publicly listed company hasn't disclosed the financial details, though.
The licences lie in the Karoo basin which is recognised as a prime hard coking coal bearing area in Africa. They are apparently close to the existing mines of the world's second largest miner, Companhia Vale do Rio Doce. Thomson Financial News reports, quoting Gremach managing director Rishi Raj Agarwal, that the mines are valued at about $100 million and that it plans to fund the acquisition through foreign currency convertible bonds and private equity placements. It plans to complete prospecting of the mines, covering nearly 135.2 million sq metres and with expected reserves of over 200 million tonne, by mid 2008.
Recently, Tata Steel Ltd had acquired a 35 per cent stake in Australian firm Riversdale Mining Ltd's coal project in Mozambique for A$100 million.