Three anonymous sources told the Bloomberg wire service that the state-run company was researching the mine, though the specific operation or reserve under consideration was not disclosed.

Coal India, which held an initial public offering and began trading November 4, is studying three assets in the US, Australia and Indonesia, chairman Partha Bhattacharyya told Bloomberg late last month. The company has not made public comment on the potential Massey deal.

Massey representatives were also mum on the rumor.

“We do not comment on merger and acquisition matters,” spokesperson Jeff Gillenwater told ILN Thursday morning.

While the US producer said in late May it was not preparing itself for sale, it did confirm it was in talks with other producers for joint ventures or asset sales.

In January, Massey inked a memorandum of understanding with Indian steelmaker Jindal Steel and Power.

“Under the MoU, the parties have agreed to work together and bid for the development and operation of underground coal mining projects,” the company said, adding that the collaboration would be on, but not limited to, possible project opportunities in Australia, India and Mongolia as well as the US.

As part of the Jindal agreement, the steel producer will identify underground coal projects and obtain the necessary licenses, permits and approvals. Massey will provide technical mining expertise, oversee project plan development, and will provide technical labour and project management.

Overseas opportunities would also benefit Coal India as it seeks to meet India’s utility and steelmaker demand, which is currently outpacing production. The company reportedly set aside significant funds – approximately $US1.35 billion, or 60 billion rupees – for acquisitions during this financial year.

“Being a state-run company, they have a responsibility to meet this demand,” Geojit BNP Paribas Financial Services head Alex Mathews told Reuters.

“The timing is right now, as with recovering economies, prices of assets will only rise.”