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SAIL along with Tata Steel scouts for fresh acquisition of overseas coal assets

21 Aug 2014 Evaluate

Steel Authority of India (SAIL) together with Tata Steel is scouting for fresh acquisition of overseas coal assets to ensure continuous supply of coking coal, a key raw material in steel production. Further, towards this development, S&T Mining, a joint venture between Tata Steel and SAIL, has invited applications for prime coking coal assets with a minimum reserve of 100 million tonnes (mt). The last date to submit applications is September 10. Meanwhile, the JV is open to the option of stake purchase, long-term off-take or any other arrangement to secure long-term supply of coking coal.

While inviting expressions of interest from prospective consultants and owners, S&T Mining would prefer mines in Australia. The company is seeking hard coking coal mines that will have an output of more than 2 mt of saleable coal per annum and a minimum asset life of 25 years. In particular, S&T Mining is interested in mines that are close to commissioning or one to two years from getting operationalized.

S&T Mining-JV was formed in 2008 to secure, develop and operate coal mines for its  promoters has remained largely dormant all these years. However, that is clearly poised for change.

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