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Sesa Goa to buy 51% in Liberian iron ore mining firm for Rs 400 cr

08 Aug 2011 Evaluate

Sesa Goa would buy a 51 per cent stake in Western Cluster Ltd (WCL), a Liberian iron ore mining company, in an all-cash deal of $90 million (Rs 400 crore). WCL will develop the Western Cluster iron ore mining project, which covers mining of deposits and setting up transportation and shipping infrastructure for its export. The acquisition is subject to ratification by the West African nation’s legislature.

Western Cluster’s estimated reserve is a little over a billion tonnes of ore, close to the coast along the Mano river. The acquisition would help the company consolidate its iron ore business. The projects also presents an excellent opportunity for developing a large integrated mining operation and establish the company’s presence in Liberia and Africa. Western Cluster is a wholly owned subsidiary of Elenilto Minerals & Mining LLC, which operates iron ore, gold, copper and other mineral mines in Africa and Europe. Elenilto has about 100 exploration and mining licences over 10,000 sq km in Africa and Europe.crackcrack

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