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Wednesday, 31 March 10
COAL INDIA MULLS JOINT VENTURE WITH RIO TINTO AND PEABODY - DNA


DNA reported that, Coal India Ltd. (CIL) has finalised two key contenders for its international joint venture (JV) in Australian and US each. The coal majors are Rio Tinto and US coal producer, Peabody Energy.

The Union coal minister, Sri Prakash Jaiswal said, “The CEO had come from the US for a meeting on Tuesday and an Indian delegations will fly to there by May-end for further negotiations.”

DNA Money was the first to break the story that CIL has hired RBS and other bankers for evaluating the coal companies.

Jaiswal added, “The deal has to meet our expectations. We want to bring in the latest technology, increase coal production, latest mining equipment and coal property purchase.”

The minister further said that CIL would be taken to the capital market in August-September and he expects it to be the biggest disinvestment from the government’s table.

The coal ministry is expecting a gap of 70 million tonnes, which it expects to import in the 12th five-year plan.

For the 11th Plan, the Planning Commission had a requirement of 604 million tonne, of which, CIL is able to produce 534 million tonne. The coal production for this year is up by 8%.

The minister also said that coal mining licenses, for all those companies who have not started mining in allotted mines, would be revoked.

Jaiswal said, “We have allocated 208 coal blocks in last three-four years and only 25 have been developed as per our survey. We had given it to private players thinking they would start mining fast, which is not the case. They are showing mines as property, so we have issued notices and are awaiting their responses. We will cancel the mine allocations if we find the reasons unjustified and false.”
Source: DNA ( By Pooja Sarkar & Shubhashish / DNA)



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