The beaten-down Australian coal sector has already prompted billionaire Clive Palmer to make a play for Waratah Coal at $C1.60 a share last week, while Felix Resources’ shares are still rallying as rumours abound it will be taken over, with China’s Yanzhou Coal Mining the alleged prospective buyer.
Reported by Reuters India, five Indian state-run firms are out to snare stakes in Australian coal mines, according to a chairman from the consortium.
“We are looking for equity stake in coal mines in Australia," Steel Authority of India chairman SK Roongta told assembled reporters.
“Negotiations are at an advanced state."
The JV, International Coal Ventures, also includes Rashtriya Ispat Nigam, power generator NTPC, National Mineral Development Corporation and Coal India.
Back in June a five-member delegation of the consortium visited New South Wales, and Indian newspaper the Financial Express reported yesterday that the JV is unlikely to jump on a list of seven out-of-operation coal mines suggested by the NSW government.
Owners of the mines reportedly included BHP Steel, Coalex Holdings, Tanwind, Anglo Coal Management, Hyrock Holdings, Oceanic Coal Australia and Wambo Coal.
Meanwhile, Coal India will return to longwall mining at its coking coal mine at Moonidih, in the Indian state of Jharkhand, according to Hindu Business Line.
Coal India subsidiary Bharat Coking Coal will use Chinese longwall technology through a contract with Zhengzhou Coal Mining Machinery Group.
While the current loss-making enterprise at Moonidih has a cost of production at 3200 rupees ($US64.94) per tonne, the use of the Chinese longwall methods is anticipated to lower costs to 1015 rupees per tonne ($US20.60/t).
“We have not achieved much success in introducing longwall technology in the past,” Coal India chairman PS Bhattacharyya said.
“This was partly due to our lack of attention on underground mining.
“As part of our attempt to reverse the trend and increase the share of underground production, we are introducing this technology. The contract is designed in a manner so that the contractor is made accountable for the success of the technology.”
Zhengzhou Coal Mining Machinery Group chairman Jiao Chenyao was enthusiastic about the deal which will also have the Chinese firm covering the maintenance and spares management of the longwall machinery.
“This is the first time we are selling longwall equipment in India,” he said.
Coal India aims to lift the total group’s production by 1 million tonnes through its underground mines for the current financial year while total production for the 2007-08 financial year was 380Mt, with 43.4Mt coming from underground operations.
