CIL awaiting response from Limpopo govt on mines acquisition

State-owned miner has already signed a pact with the govt of Limpopo, South Africa, for jointly identifying, exploring and developing coal mines

State-owned Coal India is yet to receive a response from the Limpopo provincial government on the willingness expressed by the PSU in acquiring mines owned by the government of South Africa, a move that may delay the company's plans of acquisition of mines overseas.

"A couple of months back Coal India (CIL) had written to the Limpopo government stating that it wants to acquire only those mines which are owned by the government of South Africa," a source said.

"However, Coal India is yet to receive a response on the same from the Limpopo government," the source added.

CIL had earlier appointed Deloitte to help the coal PSU to form a subsidiary firm in South Africa to acquire mines.

The state-owned miner has already signed a pact with the government of Limpopo, South Africa, for jointly identifying, exploring and developing coal mines.

The government had said that to execute the pact which CIL signed with Limpopo, it would be required to set up a subsidiary in South Africa.

The government of Limpopo, the northernmost province of South Africa, had approached CIL requesting it to form a joint venture with one of its public sector firms for acquiring coal mines there.

CIL has proposed a capital outlay of Rs 25,400 crore in the 12th Five Year Plan, plus an ad-hoc provision of Rs 35,000 crore to acquire coal assets abroad and develop the acquired coal blocks in Mozambique, according to the coal PSU.

The capital expenditure for the current fiscal has been envisaged at Rs 5,000 crore, along with additional ad-hoc provision of Rs 4,000 crore to acquire coal assets abroad and develop coal blocks in Mozambique, the company had said.