PTI reported that Vedanta Aluminium acquired 24.5% stake for INR 200.70 crore in L&T promoted Raykal Aluminium that holds certain bauxite mining licenses in Orissa.
In phases, Vedanta will fully acquire Raykal Aluminium for INR 1,811 crore. As per the filing made to the US Securities and Exchange Commission on May 31st by its sister firm Sterlite Industries the deal was signed on February 23rd this year, 2 days before a group restructuring exercise was announced by its parent Vedanta Resources.
However, no announcement related to the deal has been made by the company to the Indian regulatory authorities so far. On February 23rd 2012, the company entered into a tripartite agreement with L&T and Raykal Aluminium stating that L&T holds certain prospecting licenses for bauxite mines located at Sijmali and Kurumali of Rayagad and Kalahandi districts of Orissa.
The mines are also close to Vedanta Aluminum's plant site at Lanjigarh. The acquisition would help Vedanta Aluminium in securing bauxite for its alumina refinery in Orissa’s Lanjigarh, as the two mines are estimated to hold about 250 million tonnes to 280 million tonnes of reserves.
The mines are also close to Vedanta Aluminum’s plant site at Lanjigarh, where it operates 1 million tonnes per annnum capacity alumina refinery. Of late, the company has been struggling to meet with the rising costs as it buys bauxite, a key raw material for making alumina from the open market.
Source - Press Trust of India