Coal India plans to pick up 20-30% stake in Australian coal mining firm Noor Arora
Coal India is in talks with an Australian coal mining company to pick up a stake in the range of 20-30 per cent. If the deal materialises, it will ensure a steady supply of coking coal to Indian steel and allied companies. The country’s coal giant plans to set up an office in Brisbane this year and the pact will mark its second foray into foreign shores, the first being in Mozambique way back in 2009. “We are in talks with a mining company in Australia and some progress has been made. But we are also keeping our options open to acquire mines directly. It will finally be worked out in accordance to which one is financially and operationally more feasible,” a senior Coal India official said adding that it can procure rights over coking coal, which can be supplied back to India at cheaper rates compared to global prices. Sources said an ad hoc amount of Rs 60 billion has been set aside to execute the deal and talks are also on with steel firms in India, mostly from the public enterprise sector, for sales commitments.
ARTICLE SOURCE: BS