Coal India is in negotiations to pick 15 per cent stake in a joint venture with US-based coal firm Peabody Energy's USD 600 million mining project in Australia. Both the companies are mulling to form a joint venture company (JVC) to begin the project - Wilkie Creek coal mine, in Queensland, Australia, owned by the Peabody. The US-based firm will have 85 per cent holding in the JVC, while the rest will be owned by the Maharatna firm. The joint venture firm in which Coal India will have 15 per cent stake will operate Wilkie Creek Mine. The proposal also came up for discussion in the Coal India Board meeting on May 14 and it was decided to refer the same to the Coal Ministry for certain clarifications.
The Coal Ministry had earlier said that acquisition of the property in the overseas market will be confined to listed companies so that there is not much problem during the valuation of the deal. Peabody Energy is the world's largest private sector coal company, with sales of 246 million tonnes (MT) in 2010. The company claims to have 9 billion tonnes of reserves and manages and owns interest in 28 mining operations in the US and Australia.
Apart from Peabody, the company is also negotiating with US firm Massey Energy and Indonesian Novem/Sinarma for a possible partnership on their respective mining projects in the US and Indonesia.
| Company Name | CMP |
|---|---|
| Coal India | 438.70 |
| NMDC | 89.78 |
| GMDC | 733.40 |
| Sandur Manganese | 218.35 |
| MOIL | 327.60 |
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