KOLKATA (miningweekly.com) – Indian major Coal India Limited (CIL) completed a technical review of potential coal asset acquisitions in Indonesia, setting aside $740-million during 2014/15 for follow-up action, which includes an investment in its existing mine in Mozambique.
Though a company official declined to identify the Indonesia mines for which technical review had been completed or the level of equity on offer for these assets, he said that the Indonesian mines were part of the 17 offers received by CIL, across countries, for investments.
He said given the poor record of the miner in securing coal assets overseas and the Indian government’s push to speed up acquisitions to tide over the domestic coal shortage, CIL had established a panel comprising internal and external consultants, which had been entrusted with the task of completing technical review and technical due diligence, following which financial due diligence would be taken up.
According to an official in the Coal Ministry, the Ministry had reviewed CIL’s tardy record on acquiring overseas coal assets and directed the government-owned miner to revamp the entire internal process and decision-making in order to close deals within the shortest possible time.
The Ministry noted that the miner had not been able to make any successful bid since CIL last acquired two coal blocks in Tete province, in Mozambique, through its wholly owned subsidiary Coal India Africana.
Stepping up activities at its Mozambique coal block, CIL had commenced preparation of a geological report based on exploration which included drilling of around 35 000 m.
Around 15 000 m of geophysical logging was completed and coal samples were currently being analysed by Central Mine Planning and Design Institute Limited, the technical consultancy subsidiary of CIL, the official said.