ICVL not keen to revive old coal mines in Australia

International Coal Ventures (ICVL), a special purpose vehicle (SPV) of the country's leading PSUs SAIL, RINL, NMDC, CIL and NTPC to scout coal properties abroad, is unlikely to undertake the revival of seven abandoned coal mines offered in New South Wales, Australia.

"Most of the thermal coal mines there are abandoned, derelict, and underground. The revival of such mines may prove a costly proposition and so we are not inclined to go for them," an official source close to the development said.

In June 2008, New South Wales had sent a list of seven non-functioning mines possessing cumulative coal reserves (thermal, semi-coking and coking) of over 2,000 million tonnes to the steel ministry for exploring tie-ups with companies owning the properties to recommence mining operations.

The main companies holding the mines included BHP Steel, Coalex Holdings, Tanwind, Anglo Coal Management, Hyrock Holdings, Oceanic Coal Australia and Wambo Coal.

Confirming the list of abandoned mines sent by New South Wales to India, Minister of State for Steel Jitin Prasada said: "The New South Wales government had sent us a list of seven abandoned mines, which we forwarded to the ICVL for perusal."

Prasada, along with a five-member delegation, had visited New South Wales in June this year to explore the potential of securing coal resources for ICVL.

As part of the tour, the delegation had visited coal mines near Sydney and the Wollongong Port Kembla Coal Terminal, from where a chunk of coking coal is shipped to India.

The delegation had also called on the New South Wales Minister for Primary Industries, Energy, Mineral Resources and State Development, Ian Macdonald, who had assured coking coal linkages to the Indian SPV.