Tata Steel to sell South Africa iron ore mine to Swiss firm
Tata Steel Ltd will sell its majority stake in an iron ore mine in South Africa to Switzerland’s IMR Metallurgical Resources AG for 366 million South African Rand (Rs 1,880 crore or $256 million at current exchange rates).
The steelmaker, part of the salt-to-software conglomerate Tata Group, informed stock exchanges on Monday that it has agreed to sell Black Ginger 461 Pty Ltd to IMR Asia Holdings Pte Ltd, a group company of IMR Metallurgical.
Black Ginger is a step-down unit of Tata Steel’s wholly-owned indirect subsidiary TS Global Minerals Holdings Pte Ltd. It owns a 64% stake in Seidenberg Iron Ore Pty Ltd.
The stake sale, which was agreed upon on 18 October, will take about a year to complete. The proceeds from the sale will factor in adjustments for working capital and closing cash balance, Tata Steel said.
IMR Metallurgical is an international trading firm headquartered in Zug, Switzerland. It is involved in global trading, marketing and financing of raw materials to the world steel industry.