Business conglomerate Adani Group has made an offer to Maharatna mining company Coal India to form a joint venture to exploit one of the coal mines it has bought in Australia, an official said.
“Adani Group has given an offer to Coal India to form a joint venture company to exploit one of the coal mines, which it had bought in Australia,” a senior Coal Ministry official told PTI. The public sector firm, however, has not yet taken any decision on the offer made by Adani Group. “Coal India Ltd’s (CIL) board has not dwelt upon the offer,” the official said.
However, when contacted, Adani Group spokesperson denied to comment on the issue, saying, “We will not comment on rumours and speculations.” CIL Chairman Mr N C Jha could not be reached out for his comments.
Coal India has set aside Rs 6,000 crore out of its cash reserves this fiscal to fund any likely acquisition of foreign mines, Mr Jha had earlier said.
Adani Group - the country’s largest coal importer - has been aggressive on its overseas acquisition programmes. It bought coal assets in Australia for Rs 12,600 crore in August last year.
Its unit, Adani Enterprises, bought Brisbane-based Linc Energy’s Galilee coal tenement in the Queensland for about Rs 12,600 crore in a cash and royalty deal.
Meanwhile, taking forward its global ambitions, CIL has shortlisted US firms Peabody Energy and Massey Energy besides Indonesian Novem/Sinarma, for a possible partnership for their respective mines in Australia, Indonesia and the US.
Coal India, which has domestic market share of over 80 per cent, has maintained that it is sitting on a cash balance of over Rs 40,000 crore.