Continuing its hunt for assets abroad, the world's largest and the most inefficient coal miner Coal India is examining three proposals from Australian companies and has created a corpus of Rs 6,000 crore for acquisitions."Coal India is examining three proposals from Australia. It has signed non-disclosure agreement with three firms there and the proposals are at the level of board sub-committee," according to media reports quoting news agency PTI.

 

The coal major had received some proposals  for assets from the United States also but is not keen to pursue these on account of various factors, including high cost."The company has received a couple of proposals from the US, including Columbia, but given the distance and cost, it is not keen on these. Moreover, coking coal is not its priority," the source said. The coal PSU had earlier this year invited bids for acquiring assets abroad, a move that would help it meet shortages as it battles problems in enhancing output. It has already created an initial warchest of Rs 6,000 crore for such acquisition.

 

The PSU miner has already proposed an ad-hoc provision of Rs 35,000 crore for acquisition and development of mines abroad by 2017.Of the proposed amount, Rs 25,000 crore has been kept for acquisition and development of coal blocks in other countries like South Africa, Indonesia, Australia,  the US and Columbia; and Rs 10,000 crore would be spent on Mozambique blocks, the government had said.Meanwhile, CIL has already started process for assessing  the reserves of its mines in Mozambique and has invited bids for taking up drilling at the blocks.

 

Two coal blocks – A1 and A2 – at Motaize in Tete Province of Mozambique are spread over 200 sq km and their exploration may take over two years, as per CIL.The company has also initiated steps for opening two major greenfield mines in its subsidiary Central Coalfields — Magadh and Amrapali besides another in Western Coalfields." The source said that Coal India has lined up Rs 5,000 crore for capacity expansion in the current fiscal. Also given the demand, the coal PSU may import 5-6 mt coal in the current fiscal, a source said.

 

It may go to any of the agencies like MMTC and STC for import of coal as and when required, the source said. Besides the company has started the process of setting up washeries for value addition in coal and  six of such washeries are at different stages while bids for three to four are still to be awarded.CIL has plans to set up 20 new washeries with a 111 mt apacity to realise better price of washed coal. The coal major accounts for over 80 per cent of the domestic production.