Binani Cement to sign deal with Indonesian coal mine soon

Binani Cement is in the final stage of striking a deal with an Indonesian coal block for long-term mining rights. The coal block will provide the company with six million tpa of coal reserve. Binani requires coal worth Rs 400 crore per year. The company also has plants in China and Dubai which will be capable of producing two million tonne each by 2011. The cement company will start its new plant in Mauritius this year with a capacity of one million tonne.

BEML teams up with Indonesian firm to bid for contract mining

BEML has signed a JV agreement with Sumber Mitra Jaya (SMJ), Indonesia to bid for contract mining in India on 02 March 2009. While BEML is likely to hold 30 per cent stake in the JV, the remaining 70 per cent is to be with SMJ. BEML is likely to provide equipment, spares and services and SMJ is expected to handle planning and execution of contract mining. Apart from this, BEML is also looking at the possibilities of establishing a company in Indonesia to improve the export prospects in association with SMJ, Indonesia as the local minority partner.

CIL bags two blocks in Mozambique

Coal India (CIL) has been awarded two exploratory coal mining blocks A1 and A2 by the Mozambique Government. The A1 block is estimated to have one billion tonne coal reserves. CIL is likely to invest Rs 700-800 crore in coal mining and production in these blocks over the span of five years. These mines will be developed in JV with either the Mozambique Government or its nominee. The local partner will hold a minority stake of 10-15 per cent. CIL is likely to be allowed to export 85 per cent of the produce to India.

ONGC-TERI to bid for Kuwait oil spill contract

ONGC-TERI Biotech (OTBL), a JV between Oil and Natural Gas Corporation (ONGC) and The Energy and Resources Institute (TERI) plan to jointly submit a technical bid on 01 April for a contract to clean up oil spills in Kuwait created during the 1991 Gulf war. ONGC holds 49 per cent equity in OTBL, TERI has 47 per cent, while the remaining four per cent is with financial institutions. Kuwait may invite commercial bids for Phase I three months after the submission of technical bids. Tenders for Phase II worth $2.8 billion (approx Rs 14,000 crore) of the project is likely to be floated soon.

Union Government considers SPV for overseas coal exploration

The Union Government plans to launch a SPV called International Coal Venture with an initial investment of Rs 3,500 crore, for exploring coal in foreign countries. The government in association with NMDC, Rashtriya Ispat Nigam, Coal India and SAIL, is negotiating with companies in the US, Canada, Russia, Australia and Mozambique for investing in coal. However, nothing substantial has taken place. The investment in this venture is likely to go up to Rs 10,000 crore, depending upon the contracts.

NMDC keen to acquire coking coal sites in New Zealand & Australia

NMDC, a state-owned mining major intends to acquire two coking coal properties in Australia and New Zealand for an estimated $15 million (approx Rs 75 crore) to meet the raw material requirement of its proposed steel mills in India. The mining major along with a foreign partner, has identified low-scale operational coal mines and an exploratory block in the two countries and has initiated talks with the proprietors of the assets. The two coal properties are expected to have reserves of 25 million tonne of coking coal. NMDC is in the process of setting up a 3 million tpa steel plant in Chhattisgarh with an investment of Rs 14,000 crore.

CIL mulls over stake in Mozambique rail project

Coal India (CIL) is considering a proposal to join the Ircon International and RITES-led consortium, both subsidiaries of Indian Railways, in constructing and rehabilitating the rail system in Mozambique. RITES-Ircon syndicate have approached CIL to pick up participatory stake in the Beira Railroad Company engaged in restoring, operating and upgrading 850 km long rail line in central Mozambique, including Beira Port, to carry 12 million tonne of coal annually at an estimated cost of $440 million (approx Rs 2,200 crore). The RITES-Ircon duo holds 51 per cent controlling stake in the consortium while Mozambique Ports & Railways owns the remaining 49 per cent.

Arshiya defers Oman plans

Arshiya International, the supply chain solutions provider, has reportedly deferred its plan of setting up a Rs 150 crore Free Trade Warehousing Zone (FTWZ) in Sohar, Oman, due to global economic slowdown. Now, the company has shifted its focus to the domestic market and is likely to divert its funds into India. The company has acquired land in Nagpur, which was earlier part of its Phase II expansion. In Phase I of expansion, Arshiya was to set up one FWTZ each at Sohar in Oman, Jawaharlal Nehru Port in Mumbai and Khurja in Delhi. Meanwhile, company's FTWZ in JNPT and Khurja are underway and the company expects to get approvals for Nagpur project in a few months. Recently, Arshiya has tied-up a Rs 355 crore loan from an Axis Bank-led consortium for its JNPT FTWZ and is currently negotiating for a Rs 300 crore loan for its Khurja project.