NEW YORK Private equity firm NRI Management Group LLC and affiliates of Apollo Global Management LLC, backed by a $300-million equity commitment from Apollo, have teamed to invest in global mining properties, primarily focusing on coal assets that offer strong export opportunities, they said.
The partners pointed to the Americas as among the main targeted regions.
"Weve been looking at opportunities for the past couple of years and over time (NRI and Apollo) started to formalize (a partnership)," Gary Rogliano, chief executive officer of Richmond, Va.-based NRI, told AMM. "Its more to get a foothold into the energy business, whether its metallurgical coal for the steel industry or thermal coal."
Both companies have a history of investing and developing mining and metals companies, with New York-based Apollo playing an instrumental role in Noranda Aluminum Holding Corp.s 2007 formation and holding significant stakes in aluminum producers Aleris International Inc. and Constellium.
"There are still a lot of good opportunities within the industry even though coal stocks are down in the U.S., and if you look overseas it will remain a significant part of power production," Rogliano added. "When you get out of (the United States), coal is not bashed, and countries and industries support their mining industries."
NRI declined to specify its capital component, but said it was less than Apollos commitment. Apollo declined to comment.