MUMBAI - The world's largest mining company, BHP Billiton, may buy a controlling stake in an alumina refining project in India initiated by mineral producer and exporter Ashapura Minechem.
A report in the Business Standard said BHP Billiton could pick up a 51% stake in the $614 million alumina project in the eastern state of Orissa. Mumbai-based Ashapura will hold the remaining 49%.
The companies did not respond to the story.
They reportedly already have a confidentiality agreement under which Ashapura, India's largest producer of bauxite, shares information on mineral reserves across the country.
Under the terms of the proposed deal, both firms would invest $196.27 million toward equity and the remaining amount would be raised via debt. Approvals are still pending. Ashapura's management was quoted as saying the project would be launched next year.
BHP has been doing business in India for decades, but this would be its first equity investment in the country.
With its business booming and throwing off torrents of cash, the mining giant is eager to make acquisitions. It is rumored to be considering multibillion-dollar bids for North American aluminum producers Alcan and Alcoa.
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