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Thursday, 02 December 10
CIL INCHES CLOSER TO PEABODY STAKE DEAL - THE TELEGRAPH INDIA


The Telegraph India reported that, state-run Coal India Ltd (CIL) hopes to complete negotiations to buy over 10 per cent in Australian miner Peabody.

Coal India chairman Partha Bhattacharyya said, “Peabody is going ahead, discussions are becoming quite fruitful. Hopefully, it will be concluded this fiscal.”

The Coal India chief said his firm was also looking at “a specific property” of US-based Massey Energy.

This apart, CIL may begin talks with the Indonesian government in January for a proposed venture with PT Tambang Batubara Bukit Asam, according to sources.

Officials said talks started last month for a stake-cum-long-term coal purchase deal with Peabody. Japanese and Chinese firms have had similar deals with many major Australian miners. Last month, CIL raised over Rs 15,200 crore from its IPO and is looking at as many as five overseas buys, sources said.

Bhattacharyya said Peabody had offered 10 per cent in one of its companies and “we are trying to make it a little more, so that we have representation on the board”.

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Peabody Energy, which runs eight mines in the Australian states of Queensland and New South Wales, said it did not comment on market speculation.

Domestic firms, including CIL, Steel Authority of India Ltd and Tata Steel, have been looking to enter Australia’s coal sector for many years.

In July last year, CIL announced that it had called for expressions of interest from mining partners in Australia, while SAIL had been on the hunt for the last five years.

In February, Hancock Prospecting and Rio Tinto were named as being among the Australian miners talking to CIL. News reports added Peabody to the list in April.

Official sources said India had suggested to Indonesia that CIL and Bukit Asam, a state-run firm, could look at floating a joint venture to develop coal blocks.
Source: The Telegraph India



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