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ICVL hopeful of buying coal assets abroad

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Press Trust of India New Delhi
Last Updated : Jan 25 2013 | 2:53 AM IST

International Coal Ventures (ICVL), a consortium of five state-run companies, is optimistic of acquiring two to three coal assets in Australia and Indonesia this year.

"In this calender year we are hopeful of acquisition... in at least two or three prospective opportunities. They are in geographies like Australia and Indonesia," the General Manager and Nodal Officer of ICVL, Ajay Mathur, told reporters on the sidelines of a coal conference here.

Besides ICVL -- a special purpose vehicle of Steel Authority of India, Coal India, NMDC, NTPC and RINL formed for acquisitions overseas -- is also eying assets in Mozambique and the US, he said.

"We may also go to Mozambique and the US this year. Though I don't know whether we will be able to conclude or not. But what we are likely to conclude is in Indonesia and Australia," Mathur added.

The buy out of the properties will be either through "acquisition of the asset as a whole or equity participation", he said.

The consortium on January 31 has already submitted a bid for buying a coal asset in Mongolia which contains about 750 million tonnes of reserves.

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"The name of the block is Western Tansakhi block number one. It is slated to have something like 750 million tonnes of almost proven reserves of hard coking coal and ICVL has submitted its bid for prequalification for the development of this block as well as development of infrastructure," Mathur said.

The grouping of the five companies since its incorporation in 2009 has not been able to acquire any assets abroad.

Last week, its board had decided not to go in for countering Rio Tinto''s AUD 3.9 billion bid for Riversdale Mining on account of high valuation of the property.

Riversdale has around 13 billion tonnes of coking and thermal coal reserves at its Benga and Zambeze projects in Mozambique and Tata Steel has a 24.4% stake in it.

ICVL board is mandated to make acquisitions of only up to $300 million and for raising the amount it needs the Cabinet nod.

SAIL and CIL each hold 28% stake in it while RINL, NMDC and NTPC have 14% stake each.

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First Published: Feb 03 2011 | 8:39 PM IST

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