Coal India Ltd (CIL) has officially expressed interest in Kenya's Mui Basin.
“We have (given) an expression of interest (EoI) to extract, develop and utilise coal in the Mui Basin of Kitui county. This is for the first time that we are planning to enter Kenya,” a company official said.
Government-owned CIL, the world’s largest producer, was among 16 companies which gave an EoI. Others included Tata Power, Vale Inc of Brazil, BHP Billiton of South Africa, Continental Coal of Australia and China Nomation Machine & Export Corporation, reports indicated.
According to the ministry of energy in Kenya, the Mui Basin — 180 km northeast of Nairobi — has 62 appraisal wells and these have been drilled to depths ranging from 75m to 445m.
Inviting an EoI from investors across the world for exploration and development of the Basin, the ministry had said, “Coal with thickness varying from 0.3m to 13m have been encountered in 40 of the wells at depths of 20m to 320m below the ground level. Sample analyses have revealed that the coal is sub-bituminous, bituminous and lignite in quality.” The ministry had closed bidding invitations to firms interested in mining last week.
The criteria for the firms to be shortlisted include the capability to raise funds in excess of $100 million for investment and having a capital base of at least $50 million and a turnover of more than $50 million annually.
The Kolkata-based company’s record Rs 15,000-crore initial public offer last month was the largest ever on domestic bourses. It is India's third-highest valued firm on the market.
CIL had said it had earmarked Rs 6,000 crore for acquisitions during this financial year. It is also in the advanced stages of talks to buy a stake in Peabody's coal asset in Australia, for about $200 million.It is also eyeing a mine of US-based Massey Energy.