CIL in advanced talks for buying stake in Aussie firm

November 23rd, 2010 - 10:08 pm ICT by IANS  

Kolkata, Nov 23 (IANS) The world’s largest coal miner, Coal India Limited, has reached an advanced stage in its negotiations for buying stake in Australian company Peabody Energy Assets, a top company official said here Tuesday.

The deal is likely to be for less than $200 million.

“The two sides are now engaged in talks on pricing, and there also the differences are narrowing,” Coal India chairman Partha Bhattacharyya told reporters.

“We have Rs.39,000 crore of money in our balance sheet. We need to find some good investment opportunity. As an energy company, we have to do that as India being a developing country has a vast energy requirement. So we can’t kept this amount locked,” he said.

The deal includes buying stake in a particular mine of the Australian company besides a long-term off-take arrangement, he said.

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