Global mining majors like Rio Tinto and Arcelor Mittal who had evinced interest in partnering Coal India Limited (CIL) to develop its abandoned coal mines should gear up for the same as the state owned coal firm aims to invite tenders for these mines by March this year.
The navratna coal firm has already got the nod from the Centre to initiate the tendering process for the 18 abandoned coal mines having a combined reserve of 1.6 billion tonnes. “We have got the clearance from the Centre to float tenders for the revival and development of abandoned coal mines. CIL aims to float the tenders in March as the tender document is ready and only a minor modification may be done if needed”, a highly placed CIL official told Business Standard.
CIL had shortlisted 10 firms, both domestic and overseas players, for the development of abandoned mines and it will hold a meeting with these firms within 10 days. The meeting is expected to decide on the modalities of the joint venture (JV) which CIL is going to have with these players. Though CIL is yet to take a call on the number of JVs it is going to forge, it has been decided that the coal major will have a controlling stake in the JV. While CIL will have a 51 per cent stake in the JV, its partner will have the remaining 49 per cent.
The ten firms that were shortlisted by CIL in June 2008 are Rio Tinto India Limited, ArcelorMittal, Titan Mining Private Limited, GVK Power and Infrastructure Limited, Sunflag Iron & Steel Limited, S&T Mining Company Limited, Essar Minerals Resources, JSW Steel with Singareni Collieries Company Limited, JSW Steel with US-based Joy Mining and Monnet Ispat & Energy Limited.
