Asia / Oceania
UltraTech to acquire a limestone mine in Mozambique
Apr, 19 2012
(India) -- Aditya Birla group's UltraTech Cement, India's largest cement maker, may acquire a limestone mine in Mozambique at a cost of about 1,500 crore INR.
The limestone mine is located in the Magude region in southern Mozambique near the capital city of Maputo. It has reserves of more than 700-800 million tonnes of high grade limestone.
UltraTech started negotiations with the mine owner two months back. The Birlas had been scouting for mines in the Magude and Salamanga regions for over three months.
UltraTech could subsequently build a 1-2 million tonne cement plant in Mozambique. The long coastline of the country makes it feasible for companies to build a cement clinker plant and then export it to grinding units in nearby countries.
The Aditya Birla group had recently announced its intention to spend $500 million to build a greenfield fibre plant in Turkey.
"Mozambique is one of the fastest growing countries in Africa and has a very industry-friendly government that promotes investments in minerals," said Devesh Sharma, group managing director of Future Focus, a consultancy that guides Indian and foreign companies in setting up businesses in the African country.
"Apart from having large limestone reserves, the country is also rich in high grade coking coal which is vital for steelmaking," Sharma added.
A spokesperson for the group did not comment on the issue.
By: Rashmi Kalia (ARI-C NEWS)
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