Vedanta invests $90 million to control a billion tonnes of Liberia iron ore reserves
Sesa Goa, a subsidiary of Vedanta Resources, on Saturday said it will buy 51% stake in an iron ore making firm in Liberia for $90 million in an all-cash deal. Located in Western part of Liberia and spread over 270 sq km area, the company has an estimated reserve of over 1.05 billion tonnes iron ore.
Vedanta’s investment follows iron ore giant ArcelorMittal which after five years of ground work started operations at the country’s Tokadeh mine earlier this year and is spending $800 million in the first phase of the project to rehabilitate the rail link and port. ArcelorMittal exported the first iron ore from Liberia after a 20 year hiatus on June 11 from the port of Buchanan.
The Business Standard reports the acquisition, which is subject to ratification by the Liberia Legislature, is expected to help the Anil Agarwal-led Vedanta Resources’ subsidiary to become a significant player in the West African iron ore hub.
Iron ore giant ArcelorMittal announced at the start of July it is preparing for the start of its mining operations in Liberia. This is the result of five years’ work to restart the country’s iron ore production and will contribute to the rebuilding of the nation’s economy after two decades of instability.
Image of stamp promoting investment in Liberia circa 1981 by Stephen B. Goodwin / Shutterstock.com.