Coal India Has $4 Billion to Spend on Australian Coal Assets

The Economic Times reported that Coal India Ltd. (BSE:533278) is “seriously considering” paying more than $4 billion to gain majority stakes in two unnamed Australian coal companies. If successful, the company will gain access to 28 million metric tons of high-quality thermal coal per year.

As quoted in the market news:

CIL has sent the proposals to pick majority stakes for $2 billion each in the two companies, with annual output of 12 million tonnes and 16 million tonnes, respectively, to the company’s foreign acquisition committee, a senior official of the coal ministry told ET.

Armed with about Rs 30,000 crore, CIL aims to complete the acquisition as soon as possible. “We need to be fast. If we delay the process the assets offered to us may not be available after some time because these companies also have the compulsion of engaging with other parties for selling them,” CIL chairman S Narsing Rao had earlier told ET.

Click here to read the full report from The Economic Times.