Mumbai: Tata Power Co. Ltd. is in talks with Australian miners, including Rio Tinto for a majority holding in their coal mines, the Hindustan Times reported, citing sources close to the development.
Analysts and investment bankers said the company, part of the salt-to-software Tata Group, could spend $500-$600 million for the coal assets.
A spokeswoman for Tata Power, when contacted by Reuters, said the company had been looking for coal assets in various countries including Australia, but there had been no development as far as Australian coal was concerned.
Tata Power, which in March signed a $1.3 billion deal with Indonesia’s PT Bumi Resources Tbk to buy stakes in two coal mines, said last month it was eyeing coal assets in Australia and South Africa.
Tata Power Managing Director Prasad Menon said last month the company, which was planning to add 10,000 MW of power generation capacity in the next six years, would need about 21 million tonnes of imported coal and half of it would come from the Indonesian deal.
The acquisition of Australian coal assets, if successful, would meet the entire captive coal requirements of Tata Power.