Coal India Looks at South African Coal Assets

Coal India is likely to set up a subsidiary for buying coal assets in South Africa in a move to boost its output in order to meet rising domestic demand.

CIL was approached by government of Limpopo, the northernmost province of South Africa, to form a joint venture with one of its public sector firms for acquiring coal mines there.

The Limpopo government has also handed over its draft memorandum of agreement on the proposal to CIL.

In December last year, board of directors of CIL had approved a proposal to acquire stakes in unlisted firms overseas.

The world largest coal miner has zeroed in on three unlisted overseas coal assets for acquisition.