[miningmx.com] — AN Indian consortium of state-run companies will meet later on Wednesday to appoint a merchant bank to advise on whether it should bid for a stake in Africa-focused Riversdale Mining, a source at a member of the consortium told Reuters.
“We are inclined towards bidding (for a stake in Riversdale) subject to the outcome of due diligence,” the source said, requesting anonymity.
The members of the International Coal Ventures (ICVL) consortium are NTPC, Steel Authority of India, NMDC, Coal India and Rashtriya Ispat Nigam Ltd.
“The board is meeting this evening to appoint a merchant banker to do the due diligence,” the source added.
He said ICVL was not interested in full control of Riversdale.
India’s Coal Minister Sriprakash Jaiswal said state-run companies will seek deals to buy mines in South Africa, Botswana and Mozambique when he visits the continent next month in a bid to plug a domestic shortfall, reported Bloomberg.
“The top priority is to buy coal mines,’ Jaiswal said in an interview in New Delhi yesterday. “We already have two mines in Mozambique and the government is seeking more there and in other countries in Africa.’
Coal India Ltd., the world’s biggest producer of the fuel, and Neyveli Lignite Corp. are among state-owned companies looking for deposits overseas to feed an economy growing at more than 8% a year. Jaiswal said local supply may fall short of demand by 83 million metric tons in the year ending March 31, with Coal India set to miss its annual output target.
