Indian state-controlled coal mining company Coal India Limited (CIL) which has zeroed in on Australia for acquisitions will restrict its search for asset only for coking coal, a company official said on Monday, September 4.
He said that CIL has received a number of offers for strategic investments in Australian coal assets but merchant bankers and financial advisors appointed by the Indian coal company have been mandated to explore only coking coal assets.
Once the merchant bankers and financial advisors shortlist suitable coking coal assets, CIL would commence due diligence, expectedly within the current financial year, he added.
CIL has a number of Greenfield coal projects in hand but as the sole producers of coking coal in the country, and limited geological opportunities available to increase domestic coking coal supplies, the local miner would focus exclusively on coking coal in Australia, the official said.
CIL’s wholly owned subsidiary, Bharat Coking Coal Limited (BCCL), the primary domestic producer of coking coal produces an average of 18 million mt per year while imports in past fiscal was pegged at 45 million mt and forecast to rise to 180 million mt by 2025.