Austral buys Mozambique coke mines

Austral Coke & Projects, the Mumbai-based low ash metallurgical coke producer, has acquired 95 per cent stake in coking coal mines in Mozambique for $500 million (around Rs 2,000 crore).

It has bought six licence areas, adding up to 100,000 hectares, from the Mozambique government and made an initial payment of $10 million (around Rs 40 crore), said an executive of the company.

“The company recently sealed the deal through its Mozambique-based subsidiary Astra Mining Limitada and the financial closure is expected after the on-going public offering.

About Rs 140 crore, which is expected to be raised from Austral’s IPO, will be used for buying the mines. Further, it plans to dilute a part of its equity and is in talks with a slew of steel plants and mining companies,” said sources.