Coal India to offer 3 coal blocks to international operators

Public sector coal mining major, Coal India Ltd (CIL) has decided to put three coal blocks on the block for mining by international operators.

These coal blocks at Kulda, Kaniha and Bhubneswari in Orissa belong to Mahanadi Coalfields Ltd and CIL would invite bids international bids for these blocks shortly.

"We have decided to invite international bids for three coal blocks in Kulda, Kaniha and Bhubneswari shortly," informed Shashi Kumar, chairman CIL.

CIL through its subsidiary Eastern Coalfields is also readying the bid documents and is working on the earnest money requirement that would invite international bids for its Rajmahal mines in Jharkhand.

The company would offer its existing mines to foreign mining giants on lease basis. The idea was to allow foreign miners interested in extracting coal reserves from CIL's existing mines on a lease basis that would also bridge the demand supply gap to some extent.

Meanwhile, CIL's decision to bid for the Tamhoor Coal Mines in Australia would depend on Steel Authorities (SAIL) commitment to buy the coal from the former. In the absence of any commitment from SAIL, CIL will abandon the race for acquiring a stake in the Australian company.

"CIL had bid for acquiring 25 per cent stake in Tamhoor Coal mines with a view to supply coke to SAIL which requires metallurgical grade of coal. We intend to meet SAIL officials shortly and would ask for their commitment for the coke that would be mined from the company," explained Shashi Kumar, chairman CIL.

"If they are reluctant to buy coal from us we would abandon the race, for there is still time bid which ends on February 4," the chairman said.

Both CIL and SAIL had bid for the same company and after having discovered that SAIL has also expressed its interest in acquiring a stake in the Australian company, the former changed its stand with respect to the foreign acquisition.

"There is no point in competing with SAIL, which is also a public sector company to whom we would ultimately sell the coal. We are not very keen on submitting the final bid and much would depend on SAIL's decision," he explained.

"Although we have decided on non-participation, we are likely to pull off if SAIL decides to acquire the mine," he explained.