Coal India pulls out of Aussie mine race

Public sector mining major, Coal India Ltd (CIL) has backed out from the race for acquiring a 25 per cent stake in Tamhoor Coal mines in Australia for which it had earlier bid and has now decided to acquire other coal mines on the block there. The last date for submitting bid was February 4.

"We have decided to stay away from the race for acquiring a stake in the Tamhoor Coal mines because Steel Authority (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," explained Shashi Kumar, chairman CIL.

"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 is a subsidiary of Sydney based coal mining company Austral Coal.

CIL had earlier bid for the stake but having found out that Sail has also bid for the same stake CIL recently decided to stay away.

In a parallel development, CIL has decided to put three coal blocks on the block for mining by international operators.

These coal blocks 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 Shashi 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.