CIL to empanel merchant banker for acquiring foreign coal assets

State-run Coal India is to empanel a merchant banker or an investment banker for assistance in acquiring coal assets abroad, the leading miner said in a tender document.

"Coal India Limited (CIL) intends to acquire coal assets abroad with a view to import the produces to India and enhance the energy security of the nation. To accomplish this mission, CIL has embarked upon the process of empanelment of internationally reputed Merchant Banker/Investment Banker for rendering assistance in acquiring assistance in acquiring coal assets abroad," the tender document said.

The coal miner's target destinations are among Australia, Indonesia, South Africa, the US, Canada and Columbia, it said.

Incidentally, the CIL had submitted its application to the National Institute of Mines of Mozambique for complete surrender of prospecting licences which were awarded to its wholly-owned subsidiary, Coal India Africana Limitada (CIAL) as mining would be "technically not feasible" in the licensed areas.

CIL's latest annual report said that a mineability study was undertaken based on the findings of the geological report. The findings revealed that it was technically not feasible to do mining in the licensed areas of CIAL in Mozambique.

"Accordingly, CIL board accorded its approval for surrender of prospecting licences...to the Government of Mozambique," the report added.

--IANS

bdc/sm/vt