CIL’s plan of picking up a 15 per cent stake in US based firm Peabody Energy’s 600 million Australian dollar mining project in Australia may get delayed, as the coal major is awaiting the government’s response on certain issues pertaining to the deal. Both the companies are mulling the formation of a joint venture company (JVC) to implement the project at the Wilkie Creek coal mine, in Queensland, Australia, owned by Peabody. The US based firm will have an 85 per cent holding in the JVC, while the rest will be owned by Coal India Ltd (CIL).
The proposal had come up for discussion in a Coal India Board meeting held last month, wherein it was decided to refer the same to the Coal Ministry for certain clarifications. The Coal Ministry had earlier proposed that acquisition of the property in the overseas market will be confined to listed companies so that the there is not much problem during the valuation of the deal. However, since the proposed company would not be listed, the board had referred the proposal to the government seeking clarifications whether Coal India can go ahead with the deal if the principal (Peabody) is listed.
| Company Name | CMP |
|---|---|
| Coal India | 438.70 |
| NMDC | 89.78 |
| GMDC | 733.40 |
| Sandur Manganese | 218.35 |
| MOIL | 327.60 |
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