ArcelorMittal, Rio Tinto, GVK in race for CIL's abandoned coal mines

ArcelorMittal, Anglo Australian major Rio Tinto, Hyderabad-based GVK Power & Infrastructure, Essar Mineral Resources and JSW Steel are among 10 prominent corporations in a shortlist to develop 18 abandoned coal mines owned by state-owned Coal India Ltd (CIL) and its eight subsidiaries.

A senior CIL official said these companies would form joint ventures with CIL to develop these mines, which have estimated reserves exceeding 1,600 million tonnes.

CIL and its subsidiaries collectively produce 403 million tonnes of coal a year and have estimated reserves of 81 billion tonnes.

The mines, which were abandoned because they are waterlogged and CIL lacked technology to exploit them, are spread over West Bengal and Jharkhand.

CIL sought private participation to provide advanced technology to exploit these mines through tenders issued last year. The private participants will be responsible for developing, reviving, maintaining and operating the abandoned mines.

The CIL official said the corporation had received some 14 offers for the revival and development of abandoned coal mines and 10 have been shortlisted and approved by the board.

"The final tender document is in the process of being finalised. The draft of the final tender document has been made, it will be discussed shortly with the bidders and then the final model notice inviting tender document will be chalked out,” the official said.

This will be followed by the final tendering process, after which CIL and its subsidiaries will form individual joint ventures with the shortlisted players for the development of each of these mines, the official added.

Other companies in the shortlist are sponge iron, steel and power company Monnet Ispat & Energy Limited, speciality steel maker Sunflag Iron & Steel Company Limited and contract miner and equipment manufacturer Titan Mining.

JSW has submitted two bids--one with US-based Joy Mining and the other with government-owned Singareni Collieries.

The bidders will be able to select and choose from amongst the abandoned mines. The tendering process for the revival and development of these abandoned mines is scheduled to be completed by the end of this fiscal.