SAIL-RINL-NMDC to form SPV to buy Rio Tinto Mozambique assets.

Consortium members of International Coal Ventures Ltd. - SAIL, RINL and NMDC - will form a special purpose vehicle to buy Rio Tinto's Mozambique coal mines as other partners NTPC and Coal India are not keen on taking part in ICVL's maiden deal announced recently.

ICVL, a five-member consortium of PSU firms, reached an agreement on July 28 with global mining giant Rio Tinto to buy its three coal mines, including an operating one, in the West African country for $50 million. ICVL has to pay the required sum within two months of signing the deal.

Power producer NTPC and world's largest coal miner Coal India, who earlier wanted to disassociate from ICVL but are still under the fold, are not willing to take part in this particular acquisition, a senior Steel Ministry official said.

'Hence, it has been decided that three firms - SAIL, RINL and NMDC - under the administrative control of Steel Ministry, will form an SPV to acquire Rio Tinto's assets. SAIL will have 48% stake in the SPV while RINL and NMDC will have 26% each,' he said.

BS