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.