Coal India may invite bids for re-opening 18 mines

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30 Jul 2008

Coal India may seek expression of interest (EoI) from interested parties on re-opening 18 closed or abandoned underground mines through joint venture route, in a week’s time. The 18 mines are under the CIL subsidiaries of Eastern Coalfields Ltd, Central Coalfields Ltd and Bharat Coking Coal Ltd, spreading over West Bengal and Jharkhand. The mines reportedly have huge quantities of mineable reserves of coking and non-coking coal. According to sources, CIL has already finalised the guidelines for submitting the EoIs. The announcement seeking applications may be made as early as on Friday.
According to the guidelines, the company has invited applications from parties, which have been instrumental in re-opening of at least one such closed underground asset.
The parties should also have a benchmark balance sheet capacity and track record in mining sector.
It may be mentioned that earlier this year ArcelorMittal and the Ispat Group had approached CIL with joint venture proposals for exploring the opportunity of redevelopment of abandoned mines on nomination basis.
Though keeping off such ventures on a nomination basis, CIL saw an opportunity of making its closed assets — especially the coking coal assets — operational through such private participation.
The company initially decided to seek EoIs for redeveloping 26 closed mines. However, the number was later reduced to 18.
High capacity mines
Meanwhile, Coal India has decided to invite all the 17 parties submitted EoIs for development and operation of seven high-capacity underground mines on long-term basis, to submit detailed techno-economic and price bids.
The draft tender documents will be prepared following pre-bid meetings with the parties.
Reliance Infrastructure, Essar Mineral Resources and Essel Mining are three prominent Indian companies which have expressed interest in the projects. Also in the fray are global majors such as Rio Tinto of Australia, Anglo American of the UK, Asscon Infrastructure, DBT and Walter Mining.
“The scrutiny of the EoIs are over we will now invite the parties in pre-bid meetings for preparation of the tender document leading to submission of tenders,” a CIL source said.

Source: Hindu Business Line