- Written by ASIA Miner News
Adani Group is in discussions with Coal India Ltd (CIL) regarding a partnership to develop the Australian coal tenement it recently purchased.
Adani Enterprises, India’s largest coal importer, has purchased Linc Energy’s Galilee coal tenement in Central West Queensland for about Rs12,600 crore in a cash and royalty deal.
It is now seeking to gain the assistance of CIL for development of Galilee and there may be an equity partnership as well.
The talks are believed to be at the initial stage and are not likely to advance much further until CIL completes its IPO, which opens on October 18 and ends on October 21. The IPO is expected to generate more than Rs15,000 crore.
Adani Enterprises has been aggressive on the overseas acquisition front while CIL has also outlined more than Rs5000 crore for foreign purchases this financial year.
The Linc Energy purchase in August is one of the largest coal mine deals by an Indian group. Galilee has known coal reserves of about 7.8 billion tonnes.
Adani has also been awarded preferential proponent status for development of the Dudgeon Point terminal in Mackay, Queensland. This gives it the right to develop a coal terminal at the Queensland port with annual capacity of 30-60 million tonnes.
Adani has also entered into a US$1.65 billion deal with the Indonesian government and its mining company PT Bukit Asam for setting up rail and port infrastructure in Indonesia. This also involves gaining exclusive rights to source coal to India.