It is reported that India's largest iron ore explorer Sesa Goa plans to bid for a controlling stake in a Brazilian iron ore mine, located in the northeastern state of Piaui, which has been put up for sale by Brazilian mining exploration company GME4.
The mine, owned jointly by geologist Joao Carlos Cavalcanti of GME4 and Banco Opportunity SA, has reserves of 800 million mt and is valued at about US$2.4 billion.
Sesa Goa has cash reserves of about Rupees 41 billion (US$814 million) and is keen to grow its presence. GME4 is expected to sell the majority stake in the mine in question.
Sumanth Cidambi, spokesman for Sesa Goa's parent company Vedanta Resources Plc., declined to comment on the report.
Three years ago, GME4 sold an iron ore mine in the neighboring state of Bahia in Brazil to a representative of steel giant Lakshmi Mittal for US$360 million.