Indian firm Nava Bharat Ventures (NBVL) will acquire the controlling stake in a government firm in Zambia that owns the largest coal mine in the country.

The Zambian Government had invited global bids, which closed in March, to privatise the Maamba collieries, reports.

NBVL will fund the $550 investment through a 70:30 debt/equity ratio and will set up a power plant as part of the project.

The other competitors for the contract were Vedanta Resources, South Africa’s Londoloza Resources, Borneo Mining, London-based Aldwych International and the Zambezi Consortium, the news service said.

The deal is expected to complete by December 2009.