SAIL eyes Indonesian coal mine investment

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.