Reports suggest that Kudremukh Iron Ore Corporation (KIOCL) called off a deal with Curve Capital Ventures for developing Akjoujt iron ore asset in the Islamic republic of Mauritania, in the West African desert region.
KIOCL and the London-based venture capital fund signed a non-binding agreement for developing the Mauritanian iron ore asset.
Although the reason for cancelling the deal is not known, reports suggest that the operation and cost of evacuation of the pellets from the African asset to the consuming markets, including India, may be large-scale. The cross-border legal issues also proved cumbersome, reports indicate. The Akjoujt asset is about 250 km from the nearest shipping port, reports indicate.
Curve Resources, a wholly-owned subsidiary of Curve Capital, holds the prospecting licence for 938 square km of deposits and has begun exploration activities.
KIOCL cancelled the deal even as due diligence exercises — financial, technical and legal — were through and the KIOCL board was about to take a decision based on the consultants’ report.
KIOCL had a non-binding agreement with Curve Capital Ventures for its Akjoujt asset in the Islamic republic of Mauritania, in the West African desert region.
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