Coal India signs MoUs with Russia for coking coal
09 September 2019
Coal India Ltd (Ltd) has signed MOUs with two Russian entities in the areas of coking coal mining in the Russian Far East and the Arctic Region.
Coal India signed the first MoU with Far Eastern Agency for Attracting Investments and Supporting Exports (FEAAISE), an autonomous non-profit organization in Russia, for cooperating in their activities for mining coking coal in the Russian Far East and Arctic Region.
The second MoU was signed between Coal India and Eastern Mining Company (FEMC) of Russian Federation for exploring, identifying, sourcing, negotiating and consummating mutually beneficial investment opportunities in the mining sector in the Russian Far East.
For the last several months Coal India has been looking at acquiring coking coal assets in Russia, Canada, and Australia. In fact, it has recently identified four potential coking and semi-coking coal assets, two each in Australia and Canada, for due diligence. It may acquire minority stake in each of these assets to start with, which may be gradually increased, based on its experience.
The assets identified in Australia are working mines where Coal India is looking at acquiring stakes while the assets identified in Canada are ready to produce blocks where explorations are complete, land acquired and environmental clearances received.
The final decision on the quantum of the stake in each of these projects would be based on due-diligence reports.
The plan is to set up coking coal and high-grade thermal coal mining business overseas with a view to acquire coal resources, produce coal and import it either by opening new mines or through the acquisition of equity participation in working mines on production sharing participation interest basis.
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