Singareni receives 13 bids offering mines on foreign soil

Written by | August 28, 2015 | 0

Hyderabad: Singareni Collieries Company Limited (SCCL) which went for global bidding to take up coal mining in some of the coal rich countries after the Chief Minister K. Chandrasekhar Rao gave the go ahead months ago has received offers for 13 mines in 7 countries.

The bids were received for three mines each in Indonesia and Australia, two mines each in Mozambique and Botswana and one mine each in South Africa, Namibia and United States of America, SCCL officials said.

The company has formed a committee to evaluate the bids by legal, technical and financial parameters. Thereafter, the details of projects will be studied by applying due diligence and then placed before the board of directors for approval. The final decision will be left to the government.

With the Telangana government announcing mega plans to create an installed power capacity of 25,000 MW, mostly from thermal generation, the responsibility of SCCL to supply coal to the power stations grew enormously. In this background, the company for the first time targeted to acquire coal assets abroad and sought partnerships and alliances with reputed companies in coal rich countries as Indonesia and South Africa.

The SCCL proposed to acquire coal assets overseas by forming joint ventures, acquiring equity stakes in coal mining companies, ownership interest and outright sale of mines and blocks. It invited Expression of Interest (EoI) from interested companies with a deadline.

Officials said a major parameter in the selection of companies would be that the mine should be in a position to produce a minimum of two million tonnes per annum. It was found that the calorific value in some of the bids was not up to requirement. The evaluation committee will consider such demerits and also go into cost overheads caused by shipment from as far as US. A balance in the dipping cost of international coal which is now 50 to 55 US $ a tonne and the transportation cost would be struck.

The foreign companies will be asked the rebate that they can offer in the selling price of coal with respect to a reference international coal price index.

SCCL will become only the second Indian coal company in government sector to take up mining overseas if the bids were accepted. The International Coal Ventures Limited, a joint venture of Coal India Limited, National Mineral Development Corporation, Steel Authority of India Limited, Rashtriya Ispat Nigam Limited and another company, has purchased outright Benga mine in Mozambique.

Filed in: Hyderabad

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