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Hindalco may buy Australian coal mine for Rs 385 crore

18 Jun 2009 Evaluate

Hindalco Industries

is close to acquiring a coal mine in Queensland, Australia, in a deal estimated at $70-$80 million (about Rs 336-385 crore). The flagship of the Aditya Birla group, which has been scouting for coal mines in Queensland for some time, is reliably learnt to have shortlisted one mine in the region with reserves of around 120 million tonnes.

Although Hindalco has been scouting for a coal mine in Australia for some time, this is the right time to make a purchase mainly as coal prices have fallen sharply. Compared to October last — when the financial crisis started — the coal prices have fallen by about 50%, making the acquisition possible.

BHP Biliton, the world’s largest mining company, has agreed to a 58% reduction in its annual contract prices for coal supplies to steelmakers, mainly due to the reduction in demand. Coal is one of the key raw materials used in the steel industry, especially for units making steel through the blast furnace route.

The coal mined in Australia is likely to be shipped to India for use in Hindalco’s smelting operations. In Orissa, Hindalco has planned to increase its aluminium refinery capacity to 1.5 million tonne, from 1 million tonne and smelter capacity from 26 million tonnes to 72 million tonnes. The company has also proposed to enhance the capacity of its captive power plant from 650 MW to 1,650 MW.

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Hindalco Share Price

992.25 6.60 (0.67%)
10-Apr-2026 16:59 View Price Chart
Peers
Company Name CMP
Hindalco 992.25
Vedanta 745.10
Hindustan Zinc 564.10
Jain Resource Recycl 426.95
Gravita India 1558.65
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