Kolkata-headquartered Indian state-controlled coal mining company Coal India Limited (CIL), which has decided to evolve from just being a coal miner to a being diversified resource major, will seek control of mineral development companies of state governments in India to gain access to iron ore mines, a company source said on Wednesday, September 20.
The source said that several state governments own and operate mineral development corporations with iron ore mines under their control but, given their small and fragmented nature, these mines operate at sub-optimal levels or have been closed down. Bringing them under the umbrella of CIL will not only facilitate diversification of the coal miner but also lead to consolidation of small iron ore mines, he said.
For starters, CIL will apply to state and federal government authorities to seek control over Odisha Mineral Development Corporation Limited, aiming to revive iron ore mines under the latter, the company source said.
These iron ore mines could be integrated with the mining operations of Mahanadi Coalfields Limited, the wholly-owned subsidiary of CIL operating in Odisha, the source added.
Meanwhile, CIL, as part of its diversification into ferrous and non-ferrous metals, has identified a nickel mine in Africa. Sources, however, have declined to provide details on the grounds of a confidentiality clause in the negotiations on acquisition of the nickel mine.