CIL to acquire coal blocks in Indonesia, SA

Coal India Ltd (CIL) has recently received the centre's approval for floating Coal Videsh and has firmed up plans of acquiring coal blocks in Indonesia and South Africa.

"We have firmed up plans of acquiring coal blocks in Indonesia and South Africa. The idea is to own these mines, development and mine them. The extract from these blocks, which would be metallurgical variety of coal would be imported into India for use in industries like steel and cement," said Sashi Kumar, chairman.

"At CIL we would go alone for mining blocks in Indonesia and South Africa and would own 100 per cent equity of these companies abroad, but would also be open to other companies like Steel Authority taking a stake in the venture," he added

CIL has backed out from the race for acquiring a 25 per cent stake in Tamhoor Coal mines in Australia and has now decided to acquire other coal mines on the block in the country.

"We have decided to stay away from the race for acquiring a stake in the Tamhoor Coal mines because SAIL has also bid for the same stake. It makes no sense to separately bid because we would have imported coking coal from the company and would have in turn supplied it to SAIL. We talked to SAIL officials last week and have decide to stay away," Kumar said. Interestingly, SAILtoo backed out from the race at a later stage.

"We are now looking for other coal blocks in Australia from where we would be importing coking coal for the steel industry in India. CIL has initiated talks with the Australian government and matters are progressing," he added. Tamhoor Coal Mines was a subsidiary of Sydney based coal mining company Austral Coal.

Meanwhile, CIL has decided to put three coal blocks on the block for mining by international operators. These coal blocks were 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 Kumar.

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.