Australia's
Foreign Investment Review Board (FIRB) has cleared state-run NMDC's proposal to
acquire 50 per cent stake in Legacy Iron Ore.
According
to a Perth based iron ore explorer “The Indian iron ore producer and exporter
had earlier said it would invest $18.9 million in order to acquire a 50 per
cent interest in Legacy.”
Ms.
Sharon Heng, Managing Director Legacy, said in a statement “It is pleasing to
receive this notification from FIRB, which is one further positive step
completed towards formalizing NMDC's investment into the company.”
“The
Board of Legacy met with NMDC officials during the week, and was encouraged
that both parties could agree on a path forward to advance Legacy and increase
value for all shareholders,” she added.
India's
largest iron ore miner is looking to lock in iron ore supplies, and had inked an
MOU with Legacy on May 24 to acquire 50 per cent equity in the Australian firm.
NMDC and Legacy will jointly develop Mt Bevan
iron ore project in Western Australia. Mt Bevan is considered to hold excellent
potential for iron resources that are located close to existing road, rail and
port facilities, according to Legacy.
Leave a Reply