CIL plans venture with African Govt to secure coal assets
Coal India Ltd plans to form a majority joint venture with the provincial government of Limpopo in South Africa to acquire coal assets overseas.
Mining contributes nearly a fifth of the domestic product of Limpopo, located on the northern most tip of South Africa.
“The provincial government is expected help the joint venture to secure coal assets in South Africa,” a CIL official said, adding that a Limpopo government-owned company is expected to pick up minority stake in the JV. The issue came up for discussion at a board meeting of CIL in Delhi, on Monday. “The board has asked for some fresh clarifications on the proposed joint venture. We hope to clear the air and enter the venture shortly,” the official added.
Equity infusion in BCCL
Meanwhile, the CIL board today approved a Rs 2,539-crore financial restructuring package to bring the wholly-owned Bharat Coking Coal Ltd (BCCL) out of BIFR. BCCL is the only producer of prime coking coal in the country. CIL, in the past, had offered both interest bearing and non-interest bearing loans (current account balance) worth Rs 2,359 crore to help the ailing Dhanbad-based subsidiary to mitigate operating expenses.