SAIL to buy stake in Indonesian mine

Steel Authority of India (SAIL) is close to acquiring stake in a coal mining venture in Indonesia - a move in line with its Rs 25,000 crore expansion plan.

"The talks are in advanced stages, and the deal is likley to be sealed shortly," SAIL sources said, adding that various modalities were being worked out.

After finalisation of the deal, SAIL and BHP Billiton of Australia, which are the owners of the mine, will form a separate joint venture company in Indonesia to manage the mines, they added.

SAIL had entered into a strategic alliance with the Australian mining major last year to jointly develop coking coal and iron ore mines in India and other countries.

Officials said the ash content of the coal found in the Indonesian mines is as low as 5-6%.

SAIL is also exploring the possibility of buying into the mining business in Australia.