Wednesday, December 15, 2010

Coal India in Talks With Indonesia's Sinar Mas Group To Buy Its Coal Mines

. Wednesday, December 15, 2010

By stockOzone team

World's largest coal producer Coal India is in talks with Indonesia's Sinar Mas Group for acquiring coal mines in the island-nation, a top company official said on Wednesday.

Indonesian conglomerate Sinar Mas Group has interests in coal mining, logging and wood-pulp production and palm oil plantations.

Besides, the fourth-largest coal firm in the US, Massey Energy is also negotiating with Coal India for sale of some of its assets.

"Talks are narrowing down with Indonesia's Sinar Mas and also with US-based Massey Energy Company for acquiring coal assets in their respective countries," CMD Coal India Partha S Bhattacharyya told reporters at a SCOPE event in New Delhi.

However, he declined to provide further details about the negotiations.

The Indian coal miner, who has earmarked Rs 6,000 crore this fiscal for acquisition of coal mines abroad, is also in advanced talks to buy 10 per cent stake in the US-based Peabody Energy Corp's asset in Australia.

Peabody is believed to have offered the state-run coal major 10 per cent equity in one of their coal producing mines in Australia.

Meanwhile, private infrastructure company Lanco Infratech today announced its agreement with Australian firm Griffin Energy Group.

Lanco Infratech Ltd , through its Australian subsidiary Lanco Resources Australia Pty Ltd, has concluded an agreement with Griffin Energy Group Pty Ltd and Carpenter Mine Management Holdings Pty Ltd to purchase 100 per cent shares of Griffin Coal Mining Company Pty Ltd and Carpenter Mine Management Pty Ltd (Griffin Coal).

Coal India, NTPC and other state-run companies are actively scouting for coal mines abroad to secure their raw material supply.

This is besides the government having floated a special purpose vehicle, International Coal Ventures Ltd (ICVL), with NTPC, SAIL, Coal India among others as members for acquiring coal mines abroad.

Disclosure: None.

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