In a move that could strengthen its mining business, Kumar Mangalam Birla-led Aditya Birla Group is learnt to be in talks with US thermal coal miner Drummond Company to acquire a 20 to 40% stake for $1 billion (Rs. 5,580 crore).
The group plans to utilise coal from Drummond's mines for its power plant to make aluminum in India.
The official spokesperson of the company neither confirmed nor denied the development when contacted by HT. "We do don't comment on market speculation," the spokesperson said.
The group requires thermal coal for its flagship Hindalco Industries, the country's top aluminum producer and UltraTech cement, the country's largest cement producer. Industry experts said the company will not find it tough to finance the deal as it already gets around 60% of its revenue from overseas operations.
The company was also earlier reportedly looking to bid for acquiring a stake in New Hope, an Australia-based coal company. New Hope is valued at an estimated $5.2 billion.