Coal news and updates

SCCL seeks EoI for overseas coal assets acquisitions

May 5: In a major stride to augment its coal resources, Singareni Collieries Company Ltd (SCCL) has sought expressions of interest (EoI) from interested parties for acquisition of thermal coal assets (greenfield or brownfield) in Australia, Indonesia, South Africa and Mozambique.

The state-owned miner, which has been planning for overseas mines acquisition since October last, said that it intends to secure its thermal coal requirement by acquiring coal assets abroad “by forming joint venture with coal mining companies, by acquiring equity stakes in coal mining companies, or by any other acceptable means.”

The company has invited EoI from companies interested in offering equity stakes/ownership interest/ outright sale in coal companies/mines/assets/blocks in the aforesaid countries. The minimum ownership offered to SCCL should be 51%.

As per the details, the mines identified for acquisition should have a production capacity of not less than 2 million tons per annum (mtpa) and reserves (JORC/SAMREC compliant) of not less than 50 mt for each mine. The minimum off-take target should be 1 mtpa for each mine (or proportionate to ownership offered).

The last date of submission of EOI is June 10, 2015.