CIL to spend $1-1.5 bn to acquire assets in 4 countries

State-run Coal India today said it will buy mining assets in four countries — Australia, Indonesia, South Africa and the US — at an estimated investment of $1-1.5 billion, in a bid to expand its production capacity.

"Coal India is looking to spend $1-1.5 billion in acquiring mining assets in Australia, Indonesia, South Africa, US with a annual production capacity of 10-15 millions tonnes," Coal India Chairman P S Bhattacharyya told reporters here.

However, he did not divulge the time-frame of these buy outs.

Asked about the rationale for demanding a hike in coal prices, he said, "It will happen because wage revision has been very substantial for both workers and executives. There is no sense in allowing the bottomline to shrink."

 

The company has been demanding a hike in coal prices, which, it says, are almost half the international prices.

Coal India has a capital expenditure plan of Rs 3,200 crore for this fiscal and aims to increase production by 7.5 per cent to 435 million tonnes over the previous year.