By: Ajoy K Das
26th August 2013
KOLKATA (Mining Weekly) – Indian major Coal India Limited (CIL) has budgeted some $624-million in capital expenditure during 2013/14 to develop its assets in Mozambique and partly fund new acquisitions during the year.
According to Coal Minister Sriprakash Jaiswal, CIL’s capital expenditure for domestic assets during the current year had been budgeted at $780-million.
He said that since early this year, the miner had received 32 proposals of acquisition of coal assets overseas or setting up joint ventures of which 17 were being considered by CIL.
CIL officials said that among the proposals received, the most prospective and progress had been made in talks with private owners of a coal asset in eastern Australia, which preliminary examination of data indicated initial opportunities to yield production of around 30-million tonnes a year of coal.
However, officials declined to identify the asset on grounds that non-disclosure agreements had been signed with several owners of assets from whom proposals had been received.
At least four non-disclosure agreements were signed by CIL last month and more would be concluded over the next month as a precursor to the appointed of merchant bankers from a panel already drawn-up and approved for the star of due diligence.
The officials said due diligence exercise had already commenced in case of the coal asset in eastern Australia.
Rio Tinto’s coal assets in Queensland were also on radar of CIL and preliminary discussions have been held between the two miners, although no confirmation was available from either CIL or the Coal Ministry.
According to the Coal Ministry, part of the funds earmarked for overseas investments would be riding on completing exploration work on CIL coal assets in Tete province in Mozambique by mid-2014, following which development plans for the blocks would be drawn up.
Officials in the Ministry said that first stage of the Mozambique project had been completed including geological mapping and marking of boundaries of the block.
CIL’s Mozambique project was being implemented by its wholly owned subsidiary Coal India Africana Limited, which won the developmental rights of the blocks from the government of Mozambique in 2009.
Edited by: Esmarie Swanepoel
26th August 2013
KOLKATA (Mining Weekly) – Indian major Coal India Limited (CIL) has budgeted some $624-million in capital expenditure during 2013/14 to develop its assets in Mozambique and partly fund new acquisitions during the year.
According to Coal Minister Sriprakash Jaiswal, CIL’s capital expenditure for domestic assets during the current year had been budgeted at $780-million.
He said that since early this year, the miner had received 32 proposals of acquisition of coal assets overseas or setting up joint ventures of which 17 were being considered by CIL.
CIL officials said that among the proposals received, the most prospective and progress had been made in talks with private owners of a coal asset in eastern Australia, which preliminary examination of data indicated initial opportunities to yield production of around 30-million tonnes a year of coal.
However, officials declined to identify the asset on grounds that non-disclosure agreements had been signed with several owners of assets from whom proposals had been received.
At least four non-disclosure agreements were signed by CIL last month and more would be concluded over the next month as a precursor to the appointed of merchant bankers from a panel already drawn-up and approved for the star of due diligence.
The officials said due diligence exercise had already commenced in case of the coal asset in eastern Australia.
Rio Tinto’s coal assets in Queensland were also on radar of CIL and preliminary discussions have been held between the two miners, although no confirmation was available from either CIL or the Coal Ministry.
According to the Coal Ministry, part of the funds earmarked for overseas investments would be riding on completing exploration work on CIL coal assets in Tete province in Mozambique by mid-2014, following which development plans for the blocks would be drawn up.
Officials in the Ministry said that first stage of the Mozambique project had been completed including geological mapping and marking of boundaries of the block.
CIL’s Mozambique project was being implemented by its wholly owned subsidiary Coal India Africana Limited, which won the developmental rights of the blocks from the government of Mozambique in 2009.
Edited by: Esmarie Swanepoel
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