Coal India eyes acquisitions in Africa, Indonesia and Bangladesh
By Our Corporate Bureau | 11 Dec 2006
Mumbai: Public sector Coal India Ltd (CIL) is planning to go global with acquisition of coalmines in Mozambique, Zimbabwe, Indonesia and Bangladesh to meet the growing domestic demand of power plants.
CIL chairman PS Bhattacharya had said last month that the company was in talks with public sector companies - Steel Authority of India Ltd and Rastriya Ispat Nigam Ltd - for jointly acquiring coal blocks abroad.
"Companies in steel, cement and power sector would soon heave a sigh of relief as far as sourcing of coal is concerned as the government plans to buy coal mines abroad," minister of state for coal Dasari Narayan Rao said.
"We have short listed Mozambique, Zimbabwe, Indonesia and Bangladesh for acquiring coal mines and they are under consideration," Rao said on the sidelines of a coal seminar.
The mines would be acquired through Coal India Ltd's subsidiary Coal Videsh Ltd, Rao said. "Coal India wants to have its own mines abroad. However, it is yet to be approved by the cabinet," he added.
The minister said the country is likely to import 35 million tonnes of coal in the financial year ending March 2007. India produced 407 million tonnes of coal in 2005-06 while it imported almost the same amount during the year, he said.
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