Friday, March 12, 2010 India is seeking coal deals in Australia - ANZ Friday, 12 Mar 2010
Bloomberg quoted Australia & New Zealand Banking Group Limited as saying that Indian companies are stepping up interest to secure coal resources in Indonesia and Australia to meet the power needs of the worlds second most populous country.
Mr Glenn Porritt ED and head of mergers and acquisitions in Asia said that We are seeing a lot of flow in terms of merger and acquisition interest or off take interest from India into both Indonesia and Australia.
India and China are pressuring global supplies of coal, as the worlds two fastest growing major economies seek to power factories and homes. Essar Group this month agreed to buy Trinity Coal Corporation following TATA Power Company and Reliance Power Limited in buying overseas assets to shore up supplies.
Mr Porritt said that Weve been working on some transactions in Indonesia on thermal coal and Im pretty surprised in terms of the number of Indian bidders. Its down to the demand, supply gap that India has and the incredible thirst that India has in terms of generating extra energy.
According to Crisil Limited, coal demand in India could be 1.4 billion tonnes by 2020, exceeding domestic supply of 1.1 billion tonnes.
Mr AK Sarkar director of marketing said that Coal India Limited is looking at 10 proposals in Indonesia, Australia and the US for strategic coal alliances, which could include taking equity stakes in mines.
Mr Sarkar said that nothing will deter us from acquiring any strategic asset of any kind in order to continue to be the biggest supplier of coal. Weve been a producer of coal but now well have to become an importer. We see this as an opportunity to increase our profits. Coal India may consider buying shipping units to help transport coal.
Source: http://steelguru.com/news/index/MTM2NDY2/India_is_seeking_coal_deals_in_Australia_-_ANZ.html Posted by Energy Gas Oil at 3:41 AM
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