MT Arcelor Mittal New

U.K.-listed, India-focused Vedanta Resources PLC (VED.LN) has become the latest miner to enter the fray over a fast-emerging iron-ore hub in West Africa by purchasing a majority stake in Western Cluster Ltd., a Liberian iron ore exploration company.

Vedanta, through its Sesa Goa Ltd. (500295.BY) iron ore unit, has agreed to purchase a 51% stake in Western Cluster Ltd. from Elenilto Minerals & Mining LLC for $90 million in cash. WCL won the bid for an iron ore project in Liberia that has long-life potential with iron ore resources in excess of 1 billion metric tons and saleable product of 330 million tons.

With this purchase, Vedanta, a FTSE-100 company, is joining an iron ore investment bonanza that is taking place in Western Africa. Mining companies and steel producers from around the world are flocking to the region to develop large deposits of the steelmaking raw ingredient in order to export it to fast-growing emerging economies such as China where demand for the product remains high due to the fast-paced process of urbanization and industrialization.

ArcelorMittal (MT), the world's largest steel producer and a large iron ore producer, has already started mining iron ore from its project in Liberia this year and plans to ship its first commercial iron ore in the third quarter of this year.

Brazil's Vale SA (VALE) and Anglo-Australian mining titan Rio Tinto PLC (RIO), the world's largest and second largest iron ore producers respectively, are also present in neighboring Guinea where they're investing billions of dollars in mining projects and infrastructure to transport high-quality iron ore to the coast for export.

P.K. Mukherjee, managing director, Sesa Goa said: "we are highly delighted with this opportunity to consolidate our iron ore business. The Western Cluster Project presents an excellent opportunity for developing a large integrated mining operation and establish our presence in Liberia and Africa."

Sesa Goa said the project is in close proximity to existing port infrastructure and access to land for a railway corridor. The company said the investment will establish a strong presence in the upcoming iron ore hub catering to seaborne iron ore trade.

Vedanta is already present in Africa through copper and zinc investments in Zambia, Namibia and South Africa.

-By Alex MacDonald, Dow Jones Newswires; 44 20 7842 9328; alex.macdonald@dowjones.com (Peter Evans in London contributed to this story.)

Grafico Azioni Arcelor Mittal (NYSE:MT)
Storico
Da Ago 2024 a Set 2024

Grafico Azioni Arcelor Mittal (NYSE:MT)
Storico
Da Set 2023 a Set 2024