Coal India eyes mining assets in Australia

After getting mineral concessions for two mining blocks in Mozambique, Navratna public sector unit Coal India (CIL) has now set its eyes on coal assets in Australia, government sources said.

During a meeting of the Indo-Australia joint working group on energy and mineral here this week, CIL sought details of Australian mining assets available for takeover and equity participation, a senior Coal Ministry official said today.

In response to CIL's request, Australia has agreed to provide information related to the available mining assets as also the procedures and agencies that could facilitate such deals, he added.

CIL Chairman Partha S Bhattacharya confirmed that the company is discussing a couple of options in Australia, but said it is mostly being done through ICVL, an special purpose vehicle of five leading PSUs, including CIL, to scout coal properties abroad.

CIL is not only interested in virgin coal blocks, but is also open to equity participation with companies in Australia to take over their assets.

Early this month, CIL bagged mineral concessions for two mining blocks with an estimated coal reserves of about a billion tonne in Mozambique.