Mumbai: Coal India Ltd (CIL) is considering proposals to buy worldwide coal assets, many of them located in Indonesia, that have been presented to it by a panel of international bankers, an executive close to the process said on Wednesday.

“There are 15 proposals right now,” said the executive, who did not want to be named. “From Indonesia, there are a good number of proposals.”
The other assets under consideration are in Australia, Mozambique, South Africa and Colombia among other areas.
Coal India said recently it can spend as much as Rs.35,000 crore on acquisitions to boost production and cater to rising demand in India. The company is, however, expected to proceed with caution so that it’s not questioned about valuations in the future.
Coal India tried to buy assets belonging to US’s Peabody Energy, Massey Energy and Indonesia’s Sinar Mas in 2010, but after protracted discussions and due diligence, nothing materialized.
Coal India is the world’s largest coal mining company, but has only two overseas mines. Exploration has started at these mines, which are located in Mozambique. Production at the mines is likely to start in 2016, according to people aware of the company’s plans.
Courtesy: live mint