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* G * O * A * N * E * T **** C * L * A * S * S * I * F * I * E * D * S *
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Flat for Sale: Mapuca, Goa (Ansabhat) - 10 min walk to Mapuca Market
2 Bedroom-Living-Dining-Kitchen-Bath-Balcony-Terrazo Floors
Great Investment - Winter Getaway
Asking Canadian $ 31,500/- or Indian Rs 10 lakhs
Contact Rosario Fernandes - [EMAIL PROTECTED]
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http://economictimes.indiatimes.com/Sesa_Goas_150m_tonnes_of_iron_reserves_at_stake/articleshow/1635658.cms
Sesa Goa's 150m tonnes of iron reserves at stake
PRINCE MATHEWS THOMAS & RAJESH UNNIKRISHNAN
TIMES NEWS NETWORK[ MONDAY, FEBRUARY 19, 2007 04:05:14 AM]
MUMBAI: Steel giants Arcelor Mittal and Rio Tinto are said to have bid
at over Rs 2,100 per share for Mitsui Corp's 51% stake in Sesa Goa.
Others in the fray include Vedanta Resources, the Aditya Birla Group
and BHP Billiton. At stake for the bidders is Sesa Goa's 150 million
tonnes of iron ore reserves in Karnataka and Goa. Analysts believe
that Sesa Goa's reserves are of low grade and that the present
valuation may be too high. "But more than its present reserves, the
valuation by the bidders is based more on Sesa Goa's prospective lease
for mines in Jharkhand," said an observer. Discovery of substantial
reserves in Jharkhand will also increase Sesa Goa's mining life, which
as per its last annual report, is 15 years, an observer said.
Recent government regulations allow 100% FDI in mining of minerals and
precious metals, which has prompted foreign mining majors to make a
beeline for India's mining sector. However, the rider here is export
of iron ore has become a hot potato with the steel lobby strongly
opposing it.
The London-based Rio Tinto, which has iron ore reserves in Australia
and North America, will be banking on Sesa Goa to finally make a firm
presence in India after repeated attempts earlier. It had first
approached Mitsui for buying its stake in late 2005, but the talks
broke down. The company had also mooted a JV with Orissa Mining
Corporation, but without any result. The company produced about 130
million tonnes of iron ore in 2005. Interestingly, India, which has
iron ore reserves of 23 billion tonnes, exported about 100 million
tonnes of iron ore in 2005.
Industry observers said Arcelor Mittal has been known to be interested
in Mitsui's reserves in other parts of the globe, too. "Its bid in
Sesa Goa is part of this interest," said sources. The Japanese major
has reserves in Australia and has about 5% stake in CVRD. Mitsui,
whose exit from Sesa Goa is part of its plan to sell off non-core
business, had opened its data books for the bidders to conduct due
diligence. "In the third round, the company will give access to its
production plants for diligence," said sources. Mitsui, a diversified
conglomerate valued at over $8 billion, had bought Finsider
International's 51% in Sesa Goa in October 1996 through the UK-based
Earlyguard.
