Gremach Acquires 75% Controlling Stake In 11 Coal Mines In Mozambique

Gremach Infrastructure Equipments & Projects Ltd has announced that the Company has taken 75% controlling stake in 11 Coal mine licenses in Mozambique having an aggregate 13,520 hectares (appx. 13,52,00,000 sq. mts) in prime region of Moatize. This region falls in Karoo basin which is recognized as Prime Hard Coking coal bearing area in Africa. There is a global shortage and crisis of hard coking coal and this will add huge value to the profitability of the Company.

The Company has renamed out of above two licence no. 1165L as GRE Mine no 1 and 1100L as GRE Mine no. 2. The Company is planning to start prospecting of the area in the month of October, 2007 and will be complete by mid 2008. Expected reserves in the above mines are more than 200 million. With this acquisition, the Company has entered into the list of selected club of few Indian Companies like JSW, Tatas and Gujarat NRE Coke which has mines outside India.

These licenses have been purchased form a Mozambique Company viz. Osho Mozambique Coal Mining Limitada having registred office at Maputo.

Mr. Rishi Raj Agarwal, MD of the Company said These 11 licences are very close to existing Companhia Vale do Rio Doce (CVRD) mines and few of them are having common boundary with CVRD licences where hard prime coking coal has already been found. These strategic acquisitions will make Gremach one of the most important players in prime hard coking coal mine in the world.

To take advantage of government incentives, many Indian Companies are working bee-line in coal mining business in Mozambique. JSW group, Ispat Industries and Tata Steel have recently made acquisition of coal mines in Mozambique. Tata Steel has acquired 35 percent stake in Australian firm Riversdale Mining Ltd.s Coal Project in Mozambique for Australian $ 100 million (about $85 million). Companhia Vale do Rio Doce (CVRD), the worlds largest iron ore producer is investing a $2 billion in Mozqmbique that may develop the southern hemispheres biggest mine for the black gold.