Coal India in talks with Massey, Sinar Mas for mining ventures: report
14 May 2010
'Navratna' public sector undertaking Coal India Ltd (CIL) is in talks with Massey Energy of the US and Sinar Mas of Indonesia to acquire coal mines or form joint ventures overseas, reports quoting sources close to the developments said.
CIL, the world's largest coal producer, which mines nearly 80 per cent of India's total coal production, reported production of over 532 million tonnes of coal in the 2009-10 financial year.
CIL chairman Partha Bhattacharyya said the company has already appointed bankers and technical consultants and is awaiting results.
CIL has been forced to look overseas to bridge the growing coal shortage and rising imports estimated to reach over 100 million tonnes by 2012.
Coal India, meanwhile, is planning to offload 10 per cent of its equity in an initial public offer this year to raise around Rs15,000 crore (over $3 billion).
The CIL issue is likely to hit the market in August. Merchant bankers estimate the entire valuation of the IPO at over Rs15,000 crore ($3-5 billion).
