CIL to acquire mines in Australia, Canada

Kolkata, May 24 (UNI) Public sector major Coal India Limited(CIL) is exploring opportunities to acquire coal mines in Australia and Canada.

A team, led by CIL Director (Technical) N C Jha, recently visited Australia and Canada to acquire coal mines, which has reserves of steelgrade coking coal with less fly ash quantity.

A CIL source said in order to meet the 11th Plan target of 520.05 Million Tonne, there would be a deficit of 100 Mt which would be met through acquiring foreign coal blocks.

In Australia, CIL had made a number of roadshows and started the identification of the mines. ''We have started talking with various stakeholders. However, it is subject to that country's approval,'' an official source in the company said.

In Australia, the company would scout for joint venture partners in that country and may tie up with other public sector companies like SAIL.

The company would go ahead with Canada plan once it gets assurance from SAIL and Rashitrya Ispat Nigam Ltd(RINL). ''SAIL is now testing a small consignment of Canadian coking coal,'' Mr N C Jha said.

If the grade is found satisfactory for Indian steel firms, then CIL will bid for mines in Canada, which could well be the first overseas project of Coal India.

A high-level delegation of CIL was in Canada recently to participate in workshop.

The Coal Outfit for CIL's overseas projects is known as Coal Videsh through which Coal India will acquire overseas mines.

India currently produces 16 million tonne of steel grade coking coal annually but the demand is close to 40 MT.

UNI