International Coal Ventures Ltd (ICVL), a joint venture set-up between state-owned companies to buy coal mines abroad, is inching closer to bid for acquiring 100 per cent stake in a major coking coal property in Mozambique. The transaction if it reaches a conclusion is likely to be in the range of Rs 1,200 crore to Rs 1,500 crore.
If successful, it will mark ICVL’s first major overseas acquisition since it was created as a special purpose vehicle to acquire coal assets through a joint venture between SAIL, Coal India, NMDC, and RINL. ICVL has been plagued by criticism about its lack of progress so far in making acquisitions. The mines being considered by ICVL in Mozambique belong to mining giant Rio Tinto. According to estimates, the asset contains reserves of around 200 million tonne (mt) of coal.
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