State-run Coal India (CIL) in an effort to increase output is planning to set up a subsidiary for buying coal assets in South Africa. A couple of months back the Govt of Limpopo, the northernmost province of South Africa, approached CIL, requesting the PSU to form a joint venture (JV) with one of its public sector firms for acquiring coal mines.
CIL will form the joint venture with public firm of Limpopo and a subsidiary of CIL and it will have majority share in the JV while the public enterprise of Limpopo will have at least 26% stake. The Limpopo government has also handed over its draft memorandum of agreement on the proposal to CIL.
Recently, CIL’s board approved a proposal of the mining firm to acquire stakes in unlisted firms overseas. The development comes in the wake of Finance Ministry approval last month for the public sector firm to go-ahead with a buyout of overseas firms that are unlisted.
Coal India is the largest coal producing company in the world. The company also produces non-coking coal and coking coal of various grades for diverse applications.
| Company Name | CMP |
|---|---|
| Coal India | 462.85 |
| NMDC | 86.55 |
| GMDC | 643.00 |
| Sandur Manganese | 223.65 |
| MOIL | 296.05 |
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