SAIL eyes Indonesian coal mine investment
Recent market news suggests that Indian steel producer Steel Authority of
India Ltd (
SAIL) is contemplating acquiring a stake in Australian steel producer
BHP Billiton's coal mine in
Indonesia in order to supply coal for
steelmaking.
As previously reported by SteelOrbis, a coal shortage forced
SAIL to halt
production temporarily in 2004.
In November of 2004,
SAIL and
BHP Billiton initiated talks for joint ventures in
iron ore mining in
India and coal mining in
Indonesia and
Australia.
SAIL previously announced plans to acquire a 25% stake in Tahmoor Coal, a subsidiary of Sydney-based coal mining company Austral Coal, as a means of ensuring a stable source of
coking coal.
SAIL, which consumes 13 million tons of
coking coal each year, meets 8.5 million tons of its
coking coal requirement through imports.