JSW Steel Ltd., India’s third-largest steelmaker, is in talks to buy embattled West African iron ore miner London Mining, showing Indian firms’ growing appetite to secure raw materials abroad, sources familiar with the matter said.
London Mining was one of several junior miners set up in West Africa during the boom years on the back of rising demand for iron ore, hoping to turn the region into a new producing frontier to compete with Australia and Brazil. Instead, they have battled infrastructure woes, high costs and low prices.
The debt-burdened miner, whose shares have dropped 96 per cent so far this year, warned last week it did not have enough cash to operate its only mine and was in talks about a potential strategic investment - though that would involve significant equity dilution.
A JSW spokesman did not immediately reply to a request for comment.
