CIL: Wheeling and dealing long-term contracts to overcome production inadequacy

Thursday, March 17,

Coal India, world’s largest coal miner is now planning to import coal for domestic power companies as its development plans is battered by some restrictions laid down on pollution norms by environment ministry in some of its mining areas.*

Company is lining up the activities like negotiations of 10 years contracts with suppliers in Australia, South Africa and the US for securing coal at 10% discount to the global benchmark price, said, its chairman N C Jha.

“We hope to import at least half of the total contracted quantity during 2011-12 i.e. 30 million MT of coal for which contracts will be signed in the next few weeks” Jha said. “The quantity supplied in first year will be gradually increased on the basis of rise in domestic demand and the number of additional fuel supplies agreements we sign.” CIL is also in negotiations with global firms such as Rio Tinto, Xstrata, Anglo American, Peaboy, Massey Energy, Arch Coal, Murray Energy and Sinamas.

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