Coal

[mhlld]

Coal India eyes Australian mines
Thursday, 22 September , 2005, 14:36

Sydney: The country's largest coal producer Coal India Ltd (CIL), is in talks with Australia's mining giant BHP Billiton to buy stakes down under to ensure supplies in the future.

The state-owned CIL, which produces 87 per cent of the Indian coal, is also reported to be holding talks with other Australian coal miners for the same purpose.

The Chief General Manager of CIL unit, Coal Videsh, N Prasad, who is on tour to Australia, has said here that he would meet officials from Queensland to explore the chances of securing mining stakes in Australia's largest coal producing state.

"Coal India is planning to have stakes in mines producing coal and the preferred country would be Australia," he was quoted by Australian Financial Review as saying.

"We're in discussions with many companies, including BHP Billiton," he added.

If Coal India manages to secure a foothold in the Australian coal mining, it would be third Indian company to do so. Gujarat NRE is leading the pack by signing three such deals with Australian coal mining companies.

The latest of these deals was signed earlier this month.

Tata Steel Ltd, the country's second-biggest steelmaker, is also looking for a favourable deal with one of Australia's coal producers. Tata Steel has huge requirement for coal as it is the country's second largest steel manufacturer.

Tata Steel and CIL would have to vie with the Chinese coal consumers who are also looking for the right deals in Australia.

Close on the heels of the news about CIL's ambitions to source coal from its own mines in Australia, there are reports that Chinese metal companies are also planning to spend a whopping 10 billion Australian dollars to ensure coal supplies to the mills of world's largest coal consumer.

Chinese companies already have substantial investments in the Australian mining industry. Before Indians' appearance on the Australian resources scene, the Chinese metal giants were competing for the country's resources with other Asian rivals like South Korea and Japan. The South Korean steelmaker Posco, Japan's Nippon Steel Corp, and Mitsubishi Corp, have stakes in mines down under.

http://sify.com/finance/fullstory.php?id=13945909