(a) whether the Coal India Limited (CIL) proposes to acquire coal mines in other
countries including South Africa;
(b) if so, the details thereof;
(c) the funds earmarked for the acquisition of overseas coal mines; and
(d) the details of the steps taken by the Government to ensure fair dealings by the
CIL in acquiring such overseas coal mines?
MINISTER OF STATE IN THE MINISTRY OF COAL (SHRI PRATIK PRAKASHBAPU PATIL)
(a) to (b):Coal India Limited (CIL) had floated an expression of interest for selection
of strategic partners from four countries namely Indonesia, South Africa, Australia and
USA in July, 2009. After evaluation some of the proposals were short listed and due
diligence activities were carried out for 3 brown-filed coal assets from listed companies
one each in Indonesia, Australia and USA in May-June 2010. After seeking some
clarifications from the Government regarding investing in unlisted assets belonging to
listed companies and the minimum internal rate of return (IRR%), the matter was pursued
in CIL but none of the assets short-list could be acquired.
CIL has acquired prospecting license for two coal blocks in Mozambique through a wholly
owned subsidiary Coal India Africana Limitada (CIAL) formed in Mozambique. A
multi-disciplinary team of four senior executives have been posted in Mozambique
since February 2012 and they have opened up office of Coal India Africana Limitada
(CIAL) in Tete since March 2012. Upon obtaining environmental clearance for exploration
activities, drilling activities have been started since November 2012 and about 3100 m
drilling has been carried out till date. The geological mapping works of the coal
concession area and majority of survey work have also been completed.
CIL has executed a Memorandum of Understanding with Provincial Govt. of Limpopo,
Republic of South Africa with ultimate objective of development of coal assets in
Limpopo. Initiatives have been taken for registration of a Wholly Owned Subsidiary of
CIL in South Africa which will undertake activities of identification, exploration and
development of coal assets in South Africa including those in Limpopo.
Further, CIL has recently floated expression of interest from investment bankers,
owners/owner’s representatives for acquisition of coal assets abroad.
(c):CIL has adopted provisions of Rs. 35,000 crores for acquisition and development
of coal assets abroad to be spent in 5 years during the XII Plan period. Out of the
aforesaid amount Rs. 10,000 crores has been allotted for exploration and development
of coal blocks and creation of logistic infrastructure in Mozambique while the balance
Rs.25,000 crores has been kept for acquisition and development of coal blocks in other
countries like South Africa, Indonesia, Australia, USA, Columbia etc .
(d):Government of India has brought out a policy guidelines on acquisition of RAW
MATERIAL assets by Central Public sector Enterprises (CPSEs) in Oct 2011. The Board of
Directors of CIL in its 251st meeting has adopted this policy for implementation.
CIL will follow the guidelines suggested in the policy document and will ensure free
and fair dealings.