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The SAIL-led International Coal Ventures Ltd (ICVL) has identified four coking coal assets of 30-150 million tonnes each for probable acquisition in Australia, USA and Mozambique. ICVL is a special purpose vehicle of four State-owned companies which scouts for coal assets abroad.
“We are carrying out due diligence in four assets. Issues such as price levels, legal angles and so on are being looked into,” SAIL Chairman, C. S. Verma, told reporters during a press meet in Kolkata on Saturday.
Created in 2009, this global venture was initially spearheaded by Coal India. The other members were coking coal consumers SAIL and Vizag Steel, thermal coal consumer NTPC and mining outfit NMDC.
Coal India and SAIL held 28 per cent stake each, followed by 14 per cent each by NTPC, Vizag Steel and NMDC. In 2012, NTPC opted out of the venture due to a conflict of interest.
Coal India too had wanted to opt out and rolled out its solo initiative to acquire thermal coal assets abroad.
However, after due negotiations, the coal major remained a equity partner in ICVL but the lead role shifted to SAIL.
As a result, the focus of acquisitions also shifted from thermal assets to coking coal assets.
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