CIL eying US, Australian coal assets
Sunday, 19 December 2010
MUMBAI, Dec 18 (Commodity Online): Coal India Limited (CIL), touted as the world's largest producer of thermal coal for power generation, is looking to buy more coal. Even as the firm is considering a bid for US-based Sydney Complex, an arm of Massey Energy, it is also talking to Peabody Energy, to buy up to a 15-per cent stake in the US-based coal producer's Wilkie Creek mine in Australia.
Sources indicated that while the cost for the Australian mine would be around $120 million, Coal India's stake in United States' Massey Energy mine would be far higher, since it will be its first asset purchase in the US.
Following India's largest investment in Australia, wth Lanco Infra buying up Griffin Coal for A$ 850 million, Coal India is looking to put down anywhere between $600 million to $1 billion in a bid for Sydney Complex, sources said.
According to newswires, the Sydney Complex includes eight underground mines and one surface mine. Sydney's preparation plant has a capacity of 1,500 tonne per hour.
CIL chairman Partha Bhattacharyya is bullish in striking long term coal offtake deals with global majors.
"We have received a large number of proposals offering huge quantities and we are hopeful in striking such deals. The pricing issues needs to be resolved," he said, adding that the company has involved the Central Vigilance Commission in formulating such deals.
Coal India is a state-controlled entity. The Indian company's initial public offering (IPO) clocked a record demand of $54 billion, especially from foreign institutional investors. The company is now scouting for coal buys armed with a war chest of $1.2 billion. Its IPO received a thumping response from FIIS (foreign institutional investors), who put in bids worth nearly $27 billion - that's more than the entire amount of money they have poured into India's stock markets this year.
Earlier this year, a team from Coal India visited Peabody Energy's Metropolitan nderground mine and Wilkie Creek Mine in Australia.
The see-sawing over the past few weeks has got the Indian firm to scale down its acquisition cost by 30 per cent, for a participatory stake in Peabody Energy's Australian coal assets.
Sources indicated that while the cost for the Australian mine would be around $120 million, Coal India's stake in United States' Massey Energy mine would be far higher, since it will be its first asset purchase in the US.
Following India's largest investment in Australia, wth Lanco Infra buying up Griffin Coal for A$ 850 million, Coal India is looking to put down anywhere between $600 million to $1 billion in a bid for Sydney Complex, sources said.
According to newswires, the Sydney Complex includes eight underground mines and one surface mine. Sydney's preparation plant has a capacity of 1,500 tonne per hour.
CIL chairman Partha Bhattacharyya is bullish in striking long term coal offtake deals with global majors.
"We have received a large number of proposals offering huge quantities and we are hopeful in striking such deals. The pricing issues needs to be resolved," he said, adding that the company has involved the Central Vigilance Commission in formulating such deals.
Coal India is a state-controlled entity. The Indian company's initial public offering (IPO) clocked a record demand of $54 billion, especially from foreign institutional investors. The company is now scouting for coal buys armed with a war chest of $1.2 billion. Its IPO received a thumping response from FIIS (foreign institutional investors), who put in bids worth nearly $27 billion - that's more than the entire amount of money they have poured into India's stock markets this year.
Earlier this year, a team from Coal India visited Peabody Energy's Metropolitan nderground mine and Wilkie Creek Mine in Australia.
The see-sawing over the past few weeks has got the Indian firm to scale down its acquisition cost by 30 per cent, for a participatory stake in Peabody Energy's Australian coal assets.