Hyderabad | May 12, 2015: State-owned miner Singareni Collieries Company Ltd has invited expression of interest for acquisition of thermal coal assets in Australia, Indonesia, South Africa and Mozambique.

The move is part of the mining company's strategy to acquire overseas assets when the global prices for mines and their valuations are currently ruling low.

The mining company, which is owned 51 per cent and 49 per cent stake, respectively, by the Central and State governments, is scouting for mines with a minimum 2 million tonnes per annum capacity and reserves of not less than 50 million tonnes for each mine.

As per the terms of the EoI, the last date of submission has been set for June 10 and the mines on offer could be either greenfield or brownfield.

With the mining company internally targeting an output of up to 80 million tonnes per annum within the next few years up from about 52-54 mtpa now, it is seeking to secure its thermal coal requirement by acquiring coal assets abroad.

This could be either by forming a joint venture with other coal mining companies or by acquiring equity stake in coal mining companies.

During the recent annual meeting, N Sridhar, Chairman and Managing Director, Singareni Collieries, had said that this was the right time to acquire assets as the prices are currently ruling low.

With the creation of new State of Telangana, Singareni sees itself taking on the responsibility of being the supplier of coal of choice for power, cement, steel and other consumers in the State.

As the State seeks to expand its power assets, the acquisition of mines abroad and possible joint venture partnerships in coal-rich countries such as Australia, Indonesia, South Africa and Mozambique is seen as the most focussed move.

(Source: http://www.thehindubusinessline.com/)