The Hindu : Business : ICVL eyes stake in coal mining companies abroad

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ICVL eyes stake in coal mining companies abroad

Special Correspondent

Company’s apex committee to take final decision on December 22
Exploring joint venture options for developing coal property

NEW DELHI: The special purpose vehicle (SPV), International Coal Ventures Ltd (ICVL), formed by SAIL, Rashtriya Ispat Nigam Ltd., NMDC, NTPC and CIL for scouting coal mines abroad, is now considering picking up stake in some mining companies in Australia, Canada, Indonesia, Africa and Mozambique.

“The merchant bankers have given a list of over 100 potential firms and properties for acquisition or joint venture but we will focus on around ten companies. A final decision would be taken by the ICVL’s apex committee scheduled to meet here on December 22,” sources said. Of the ten mining firms being eyed by ICVL, six have coking coal property while the rest run thermal coal mines.

Coal Ministry official said ICVL not only planned to pick up minority/majority stake in the overseas mining companies, but was also exploring the option of entering into joint ventures for developing the coal property. The SPV is even open to taking over greenfield coal projects from the identified mining firms. To meet a sizable coal requirement of its partner companies, ICVL is also in the process of picking up over 10 per cent stake in Australian mining firm Gloucester Resources. Through its merchant banker Merrill Lynch, ICVL, over a couple of months ago, had bid for minority holding in the firm, but the offer was rejected on over valuation. “Gloucester Resources has asked ICVL for counter offer, which the board would consider keeping into account the falling valuations of mining firms amid global economic slowdown,” the official said.

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