CIL may strike up to USD 200 mn deal for Peabody's Aus asset | business | Hindustan Times
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CIL may strike up to USD 200 mn deal for Peabody's Aus asset

The world's largest miner, Coal India, is in advanced talks to buy stake in Peabody Energy's Australian asset for less than USD 200 million.

business Updated: Nov 23, 2010 19:29 IST

The world's largest miner, Coal India, is in advanced talks to buy stake in Peabody Energy's Australian asset for less than USD 200 million.

"The (Peabody) deal is for buying stake at a particular coal mine in Australia and also long term offtake contract," CIL Chairman Partha S Bhattacharyya told reporters.

"We are closer to a deal as the pricing difference between us has narrowed. We expect it may lead to a concrete investment decision. The deal will cost less than USD 200 million," he said.

Bhattacharyya said, "We have cash balance of Rs 39,000 crore and, so as an energy company, we have to look for quality coal assets to meet the country's energy demand."

The company is in talks with US-based Massey Energy for assets, but CIL is confused to move ahead as reportedly the company itself is also up for sale.

The negotiations for the Indonesian assets have not progressed so far, Bhattacharyya said.

CIL said it received an overwhelming response for long-term coal offtake and has got Central Vigilance Commission's nod for it and contracts would see the light of day soon.

Some 30 bidders from four countries have expressed interest for the long term supply contract.

"The aim is to sell imported coal at a discount in the domestic market and make us profitable also," Bhattacharyya said.