In a bid to bridge the shortfall in its domestic production, state-owned miner Coal India (CIL) is mulling to buy stake in three coal assets in mineral-rich Australia. In this regard, the company will invest around Rs 6,000 crore this financial year. The three mines have a combined production of 25 million tonne per annum currently.
Earlier in April, the company already signed non-disclosure pact with three Australian companies. The company may have to shell out around $375 million for the deal, assuming the miner takes up at least 25% stake in each of the three mines, an average of 30 year life of the mines and the current average coal asset valuation of $2 per tonne in the international market.
Coal India is the world’s largest coal mining company. It also produces non-coking coal and coking coal of various grades for diverse applications.
