International Coal Ventures Ltd, a joint venture company floated by five cash-rich state-owned companies to buy coal assets overseas, is likely to finalise at least one deal by the end of this fiscal.

C.S. Verma, Chairman of SAIL, who also heads the joint venture, said it was in the process of conducting due diligence for five coal assets in different geographies.

“We may finalise at least one deal by this fiscal end,” he told media persons here.

Apart from SAIL, Coal India Ltd, NMDC, Rashtriya Ispat Nigam Ltd and NTPC are equity holders in the company. So far, it has not been able to finalise any acquisition deals.

Verma, who is in-charge Chairman of NMDC, said the mining firm had set aside Rs 1,200 crore for its overseas pursuits this fiscal.

A part of this would be put in ICVL’s acquisition of coal assets after a deal is finalised, while some of it would be spent on its own overseas acquisition programme.

It has completed acquisition of 50 per cent stake in Legacy Iron Ore Ltd in Australia and is pursuing opportunities in acquiring mineral assets in countries such as Brazil, Russia, Mozambique and the US.

It recently completed detailed exploration for gold in identified blocks in Tanzania, with the Government of Tanzania granting four mining leases in Bulayang Ombe areas earlier this year.

NMDC, which currently produces about 30 million tonnes of iron ore, is expanding its capacity to 40 million tonnes by 2014-15 and 50 million tonnes by 2020.

“The total capital expenditure plan for this fiscal is Rs 4,656 crore,” Verma said.

It is constructing a 336-km slurry pipeline between Jagdalpur and Visakhapatnam and a four-million-tonne pellet plant in partnership with RINL, the corporate entity of Vizag Steel Plant.

>amitmitra@thehindu.co.in

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