Coal India eyes mines in Australia

A board-level committee at Coal India (CIL) will meet next week to decide the way ahead on select acquisition proposals in Australia.

The Indian miner recently entered into non-disclosure agreements with two Australian coal companies for due diligence of a number of thermal coal assets. As part of a global practice, companies enter into non-disclosure agreements to exchange classified information.

The board level sub-committee on foreign acquisitions will meet next week to decide whether the proposals are to be discussed at the board meeting, a CIL source said. The official, however, clarified that the proposals were still in the nascent stage.

While the CIL official did not divulge the details of assets, sources in Australia told

Business Line that the Indian miner was negotiating with a British-American mining major to acquire a partly explored asset in the Surat basin in Queensland.

According to sources, the developed assets in Australia may cost as much as a billion dollars (over Rs 5,500 crore).

To minimise financial risk as well as the procedural hassles in securing clearances from the Union Government, CIL is setting its sights on low-value unexplored or partly-explored assets. CIL has been on the lookout for suitable thermal coal asset overseas for at least three years.