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.
