Global steel company ArcelorMittal will increase its stake in Perth-based coal producer Coal of Africa Ltd beyond 15 per cent following approval from the Foreign Investment Review Board.
The Perth company said it will now go ahead with tranche 2 of the agreed placement to Mittal as announced in April of 13.6million at £1.11 per share raising an additional £15.1 million ($A30.8m)
Following the issue, Mittal will hold approximately 17.8 per cent of CoAL issued capital.
The second tranche is part of the overall $142.7m placement with ArcelorMittal agreed to in April, which originally paved the way for the global steel company to acquire a 16 per cent stake.
Incorporated in Western Australia and listed in 1980, CoAL is primarily focused on the acquisition, exploration and development of thermal and metallurgical coal projects.
Since 2005, the company has also listed on both the AIM and JSE markets.
The company's key projects, along with its leading metals processing company NiMag Group (Pty) Ltd are in South Africa.
