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Monday, 20 September 10
ICVL LOOKS FOR COAL ASSETS IN UZBEK, INDONESIA, AUSTRALIA - ECONOMIC TIMES


Economic Times reported that, International Coal Ventures, or ICVL, the special purpose vehicle floated by five state-owned firms to scout for coal assets abroad, is talking to mine owners in Uzbekistan, Indonesia and Australia even as tight supplies of coking coal used by steelmakers has lengthened negotiation time.

Jointly owned by two steelmakers, a utility firm and a coal mining company, ICVL is taking no chances after having lost a prospective bid for a mine in Australia at the very last stage, said a senior executive.

“We are strongly pursuing four proposals which are at various stages of evaluation,” SAIL chairman CS Verma, who is also chairman of the special purpose vehicle, told ET. “We have put non-binding bids for a couple of overseas mines and are conducting due diligence on these assets.”

The firm’s owners include SAIL, Rashtriya Ispat Nigam, which operates the Vizag Steel Plant, Coal India, minerals major NMDC and utility NTPC.

Last month, ICVL was outpriced in its bid to acquire Stanwell coal mine in Queensland, Australia, after it failed to increase its binding bid of around $180 million. The Australian mine could have been a raw material source for the steel companies, besides being a source for NTPC and Coal India.

India’s current shortfall in coking coal, a key input for making steel, is about 80 million tonne. However, ICVL, which was formed in 2008, is yet to acquire a mine overseas. “We are at various stages of evaluating two other leads also,” said Mr Verma. This includes a property in Indonesia, where a team of officials will visit to look at the probable prospects.

Last week, ICVL aligned itself with Rail India Technical & Economic Services (RITES), an engineering consultancy firm under the Ministry of Railways, to jointly develop properties in Indonesia and Mozambique. As part of this, RITES will prepare the feasibility report on setting up the infrastructure for transporting coal mined by ICVL.
Source: Economic Times



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