Coal India (CIL) today said its plans to acquire overseas coal mines were not likely to materialise this financial year. Instead, the world’s largest coal miner expects to clinch a deal with three possible companies — US-based Massey, Australia’s Peabody and Indonesian Sinar Mas — by the first quarter of next financial year.
“Big progress has been made in purchasing overseas coal mines and, hopefully, it will be finalised in April or May next year,” CIL Chairman Partha S Bhattacharyya said.
The state-run company is in advanced talks with Massey, Peabody and Sinar Mas to pick up mines in either of the three countries to bridge the supply-demand mismatch in India, which expects to import about 83 million tonnes coal to meet the shortfall. CIL, which accounts for more than 80 per cent of India’s total coal production, had earmarked about Rs 6,000 crore for foreign acquisitions this financial year.
“It is not that the deal cannot be finalised in the current financial year, but only three months are left,” he said.
“Many companies had expressed interests, while the board’s sub-committee shortlisted a few and the final negotiations were with three companies,” Bhattacharyya said.
He added talks with Massey and Peabody were in the final rounds and a CIL team would visit the two countries next month to give final shape to the proposals.
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“The coal from America is of high quality, though it will be costlier as freight cost will be more. Efforts are on to import coal below the index price. It would be in the larger interest of the consumer and the country,” he said.
‘Stalemate to be over soon’
The stalemate between the coal and the environment ministries over ‘no-go’ mining areas would be resolved soon, according to Minister of State for Coal Sriprakash Jaiswal.
“The prime minister has taken the initiative and a Cabinet sub-committee has been formed to look into the matter... In between, some problem had come, but it would be resolved soon,” Jaiswal said.