Web Exclusive | March 2013
CIL considers proposals to buy overseas assets
Reports indicate that Coal India (CIL) has set eye on coal assets in Indonesia, Mozambique, Australia, South Africa and Colombia among other areas for acquisition.
It may be recalled that the state-run miner plans to invest a maximum of Rs 35,000 crore on acquisitions of coal mines. CIL tried to buy assets belonging to USA’s Peabody Energy, Massey Energy and Indonesia’s Sinar Mas in 2010, but after protracted discussions and due diligence, nothing materialized.
At present, the company has two overseas mines in Mozambique and exploration has started at these mines. Production at the mines may start in 2016, reports indicate.
It is learnt from media reports that the firm is considering 15 proposals for buying overseas assets. The company is, however, expected to proceed with caution so that it’s not questioned about valuations in the future.