[miningmx.com] — CSN, Brazil’s biggest diversified steelmaker, has no immediate plans to sell its stake in Australia’s Riversdale Mining on which it is relying as a source of coal, CFO Paulo Penido Marques said on Tuesday.
CSN sees global mining giant Rio Tinto, which plans to go ahead with a takeover of Riversdale after securing a 41% stake, as a valuable partner, Penido said. He acknowledged that Rio Tinto had approached CSN, which has a 19.9% in Riversdale, on the deal.
“(CSN) wants to keep (the asset), and we recognize the need to have a strong operating partner with ability” to develop Riversdale, Penido told analysts in a conference call.
For CSN, the Riversdale investment is a strategic move toward gaining long-term access to coking coal, a key ingredient in steelmaking. CSN does not intend to take over Riversdale, Penido said.
Rio Tinto in turn wants Riversdale because of its coal assets in Mozambique, which could supply about 10% of that raw material globally in a few years.
Penido reiterated that CSN is “open to listening” to any proposals, but that its intention is to extract value from its stake in Riversdale.
A person familiar with the deal told Reuters that Rio Tinto was locked in talks with CSN on Tuesday, trying to secure a majority stake.
Rio Tinto said it would pay A$16 a share to shareholders of Riversdale who accepted its bid. If its stake reaches 47 percent by April 6, the price per share could increase to A$16.50.
