Rio’s Turquoise Hill Resources Ltd. unit also agreed today to sell a 29.95 percent stake in Mongolian coal producer SouthGobi Resources Ltd. for C$25.5 million ($23.5 million).
National United Resources Holdings Ltd. will pay 45.5 Canadian cents a share, a 31 percent discount to SouthGobi’s last traded price in Toronto yesterday, according to a statement today. That deal comes almost two years after Aluminum Corp. of China Ltd., China’s biggest producer, dropped a bid to buy 60 percent of SouthGobi for C$925 million.
Turquoise Hill will maintain a 26 percent stake in SouthGobi after the deal, the buyer said in its statement.
The deal for Rio’s Mozambique coal unit is the first acquisition for ICVL, formed in 2009 with investments from steelmakers Steel Authority of India Ltd. and Rashtriya Ispat Nigam Ltd., iron ore producer NMDC Ltd., Coal India Ltd. and power generator NTPC Ltd. (NTPC) to buy coking coal mines overseas.