CIL plans to acquire blocks in Indonesia

Coal India (CIL) is planning to acquire mine blocks in Indonesia and South Africa to source coking coal with the CIL board approving the incorporation of Coal Videsh, company chairman Sushil Kumar said today.

"We are looking at coking coal reserves in South Africa. We are also looking for acquiring some mining blocks in Indonesia," Kumar told newspersons.

With the proposed overseas venture in Mozambique falling through following the withdrawal by Sail, the coal monolith may now go alone for acquiring 100% stake in the Indonesian blocks.

Kumar said the proposed venture was still at a preliminary stage and the company was holding talks with the Indonesian government.

CIL has plans to produce about two to three million tonnes from the Indonesian blocks. "We are importing about 12-13 million tonnes of coking coal. Even if half of that is sourced through such ventures, its good for us," he said.

To a query, Kumar said the coal royalty was last revised in August, 2002 and would be due for another revision in August next. "The logical way of doing it is to bring it under advalorem and relate it with price," he added.