International Coal Ventures Ltd (ICVL), a consortium of five state-run companies, is close to "clinching" a deal for buying some stake in Singapore-based MEC Coal, a senior company official said.
"Yes, we are on the verge of clinching it," SAIL Chairman C S Verma, who also heads ICVL, said.
He, however, said the deal was yet to be struck and ICVL was looking at various issues before signing on the dotted lines.
Verma also did not disclose the percentage of stake that ICVL was looking at buying in MEC Coal, nor the size of the deal.
"It is yet to be frozen... It is an overseas acquisition and we have to be doubly sure and analyse it due to the various issues involved," he said.
According to industry sources, ICVL is looking at 24 per cent stake in the MEC Coal for about $200 million.
Through its subsidiary PT Tekno Orbit Persada, MEC Coal is developing two coal mines in Indonesia's East Kalimantan, with an estimated reserves of 1.5-2 billion tonnes.
Recently, ICVL had signed a memorandum of understanding (MoU) with the Indonesian government for developing mineral assets, setting up of processing facility, steel plant and other infrastructure in Central Kalimantan.
ICVL is promoted by Steel Authority of India (SAIL), Coal India (CIL), NTPC, NMDC and Rashtriya Ispat Nigam (RINL) in 2009. While SAIL and CIL hold 28.5 per cent each in the company, the three others hold 14.29 per cent each.
ICVL's search for acquiring overseas mining assets is yet to bear fruit, although it has carried out due-diligence on several properties in Australia, Indonesia, South Africa, Mongolia and Mozambique among others.
ICVL board is empowered to take investment decisions up to $300 million. Anything over this has to be vetted by an empowered committee of secretaries and later by the Cabinet.
