Mumbai: Reliance Power is in talks with Australian mining firms BHP Billiton and Rio Tinto to set up a coal mining joint venture, the Economic Times said on Friday.
Reliance plans to spend close to Rs50 billion ($1 billion) to develop coal mines, which will be used to power its electricity plants that are under construction, the newspaper said, citing a person familiar with the development.
“We continue to evaluate options in our business. However, we don’t comment on specific opportunities or transactions,” a Reliance spokeswoman said.
The Economic Times said Brazil’s Vale, Peabody Energ of the United States, Xstrata and UK’s Anglo American were also believed to have expressed interest in partnering with Reliance Power.
The company, which listed on the stock exchange in February 2008, is developing three large power projects across India.
It has coal reserves of 2 billion tonnes, sufficient to generate more than 16,000 megawatt of power for the next 25 years, the paper said.