International Coal Ventures (ICVL) to scout partner abroad, is considering picking up equity stake in US-based Patriot Coal.
ICVL is a special purpose vehicle of leading PSUs -- SAIL, RINL, NMDC, CIL and NTPC.
A two-member team comprising officials from SAIL and CIL is likely to leave for New York tonight for negotiations with executives of the mining company, an official source said.
"The proposal for equity participation has come from the owners of the US-based company. Whether ICVL will pick up minority or majority stake is not yet finalised," the official said.
Patriot Coal, the third largest producer and marketer of coal in eastern US, controls about 1.9 billion tonnes of proven and probable coal reserves.
It produces over 20 million tonnes of coal annually from its mining operations in Appalachia and Illinois basin. Of the total produce, about 23 per cent is coking coal, used as vital input by the steel sector, while the rest is thermal coal, primarily needed for power generation.
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When contacted, ICVL Executive President and RINL CMD P K Bishnoi did not divulge specific details.
"The SPV has identified about 20 overseas mining properties for equity participation and things would unfold in a couple of months," he said.
Of the about 20 properties we have identified, five are in advanced stages in Mozambique, US, Canada and Australia, while another 15 or so are under evaluations, he added.
ICVL, which is vested with more powers than Navratna firms in terms of decision making, is in the process of being incorporated as a private limited company with an authorised capital of Rs 3,500 crore.
The member companies have already entered into a joint venture agreement for it and have applied with the government for approval.