SAIL, RINL join hands for foreign coal mines

Public sector steel manufacturers Steel Authority of India Ltd (SAIL) and Rashtriya Ispat Nigam Ltd (RINL) are looking to acquire coal mines abroad in order to meet the needs of their steel-making units here and have appointed consultants to valuate the mines in question.

Both companies rely heavily on markets abroad for the supply of coking coal as the domestically available variety has a relatively high ash content.

While SAIL imports about 70 per cent of its requirement, mainly from Australia, RINL imports all its coking coal from foreign markets.

While the companies are in a joint bid for a mine in Australia, they will bid separately for mines in the USA and Canada, RINL Chairman YSS Rao told media persons at the National Steel Consumers' Council meeting here today.

"We are in touch with some mine owners and are in the process of examining the quality of coal available. The deciding factor will be the blendability of the coal and we are at the stage of technical evaluation," SAIL Chairman VS Jain said.

Both companies were, however, tightlipped on the number of mines they were seeking to bid for or other quantitative and financial aspects.