CIL shortlists 24 firms for overseas joint ventures

State-owned Coal India (CIL) had shortlisted 24 international mining firms as part of its plan to undertake overseas joint ventures for procuring coal for domestic consumption, Director (Technical) NC Jha said.

Currently, the mining major is looking at three partnership models. First, a joint venture that will only explore opportunities for offtake thereby, sourcing coal at lower than the international rates over the long-term. Second, equity partnership in brown-field projects with coal offtake at a discounted price and third, a joint venture for greenfield projects. CIL is looking at opportunities in the United States, South Africa, Australia and Indonesia.

“We have shortlisted two companies from four different countries in each of the categories. We are in the process of engaging a merchant banker as well as empaneling a technical consultant who will look into these companies. We will be in a position to make a decision in another three months,” Jha said.

Last year, CIL had floated a tender for overseas strategic partnerships and had received 52 proposals. Subsequently, officials from select firms had made presentations before a special committee of the domestic coal major.

Meanwhile, the Coal Minister Sriprakash Jaiswal on Monday laid the foundation stone for the new headquarter for CIL at Rajarhat, which is likely to cost in the range of Rs 126.

The coal major's present headquarter — a century old heritage building in the heart of the city's business district — will be converted to a museum that will chronicle the 200 years of coal mining in the country.