ICVL receives 2 proposal of coal mines in Indonesia

International Coal Ventures Ltd (ICVL), a consortium of state-run firms with the mandate to acquire coal assets abroad, has said it has received two proposals of thermal coal mines in Indonesia and is also examining a coal asset in Mozambique.

In a presentation to Coal India Ltd, ICVL said that "two promising proposals of thermal coal operating mines (in Indonesia) were received recently" by the consortium.

ICVL is also "currently examining a promising asset adjoining Riversdale (Canada) stated to have the Chipanga Seam (that predominantly comprise coking coal)," it said.

CIL had earlier stated that it would take a decision on continuing its association with ICVL after the consortium makes a presentation before CIL board.

ICVL further said that the details of the both mines in Indonesia were "being obtained for passing on to CIL".

Elaborating on its acquisitions initiatives, ICVL said that due diligence has already commenced for three operating coal mines in the US with the intent of forging joint ventures.

ICVL had earlier requested CIL to continue as a consortium member.

In May, Coal India -- which is among the two largest shareholders of ICVL with a stake of 28 per cent-- had said that it intends to quit the PSU consortium.

The company felt that continuing with ICVL only involved financial burden without commensurate advantage and had informed the Coal Ministry about its intention to exit.

NTPC, another promoter of ICVL with a 14 per cent stake, has already expressed its intention to quit the consortium.

Besides CIL and NTPC, ICVL's consortium comprise SAIL, RINL and NMDC. While SAIL and CIL each hold 28 per cent stake in the group, the other promoters -- RINL, NMDC and NTPC -- have 14 per cent stake each.

Since its inception in 2009, ICVL is yet to acquire any mine abroad, even though it has set a target of owning 500 million tonnes of coal reserves by 2019-2020.

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