Coal India upbeat over metals mining venture, wants to go it alone

Analysts fear investments in project will hurt firm's cash flow in near term

Coal India's decision to re-position itself as a holistic energy entity by foraying into the metallurgical mining sector is likely to place the government-owned major in the league of the world's top miners, including Glencore, Rio Tinto, BHP and Vale, among others.

A consultant has been hired to conduct a study on how the company can modernise and adapt to current trends.

The metals mining move will also help it hedge against the impact of renewable energy. As India, in line with other countries, moves towards 'clean' and renewable energy, the dependence on thermal power would decline. This means less demand for coal.