While Massey remained mum on any discussions, Coal India chairman Partha S Bhattacharyya confirmed activity to the Associated Press via the Economic Times over the weekend.

"We are talking to Massey, but not for the whole company,” he said.

“Some proposal is going on with the company. They expressed interest in offering certain mines to us and we are looking at that."

Bhattacharyya said Coal India was progressing with various agreements worldwide. So far, it has submitted three expressions of interest, with Massey the recipient of one of these.

In addition to the US, the Indian producer has an interest in Australia, South Africa and Indonesia.

“In Indonesia, one acquisition is under active consideration," Bhattacharyya said, noting that Coal India was considering deals both with and without equity sharing.

"Without equity sharing, things should come faster because there we are very clear. We have been having discussions at various levels of government and things are becoming more and more clearer [and] with equity investments, three proposals are under consideration."

Coal India held an initial public offering and began trading November 4. It raised a record $US3.4 billion in the country’s largest IPO.

Overseas opportunities would 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 $1.35 billion, or 60 billion rupees – for acquisitions during this financial year ending in March 2011.

When asked by the AP if the company would spend more than what was set aside for a particularly attractive asset, Bhattacharyya said it would.

"If necessary, we will. We are flexible and we have all the money."