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Saturday, 05 September 09
52 COMPANIES SUBMIT EOIS TO COAL INDIA


The Hindu, India's largest English news paper reported that, International mining majors from the U.S., South Africa, Australia and Indonesia are among the 52 companies, which have responded to expression of interest (EoI) sought by Coal India Ltd (CIL) for striking strategic partnerships with overseas coal mining companies. CIL, which accounts for 85 per cent of India’s coal production had sought these EoIs on July 16 and August 31 was the last date for submission of EoIs.

CIL Chairman Partha S. Bhattacharyya, who is now touring Australia along with Union Minister Sriprakash Jaiswal, declined to reveal anything on the EoIs saying that he was bound by a confidentiality clause. CIL directors too refused to say much on this matter. However, Mr. Bhattacharyya, speaking to The Hindu, said that “The response is very substantial”.

While the Indian mining mission, organised by the CII in co-operation with the Australian Trade Commission, attended various functions, they visited some mines too, including that of Rio Tinto. Mining practices in Australia is considered to be among the best in the world with the induction of large capacity sophisticated technology and its management.

Enquiries revealed that of the 52 companies putting in their EoIs, 18 are from Indonesia, 15 from Australia, 13 from the U.S. and six from South Africa.

These offers would now be evaluated and it would have to be checked whether they fulfil the requisite criteria, which a senior official said was fairly liberal.

Even as it tries to plug an ever-growing demand-supply gap (projected to touch 200 million tonnes by 2016), through increased production, CIL has now decided to strike partnerships and acquire mines abroad to augment supplies. It has already acquired mine blocks in Mozambique. However, it needs ready supplies to feed the energy sector, which is heavily reliant on coal as a fuel.

As such, it is open to any sort of partnerships, including acquiring stakes in overseas companies against assured coal supplies, sources said. CIL is targeting to produce around 435 million tonnes this fiscal.
Source: The Hindu



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