Coal India eyes over 10% stake in Peabody asset

Coal India eyes over 10% stake in Peabody asset

New Delhi: Coal India, the world’s largest coal miner, is looking at buying over 10% in an asset of Australia’s Peabody and has ample funds for overseas acquisitions, chairman Partha Bhattacharyya said on Wednesday.

“Peabody is going ahead, discussions are becoming quite fruitful. Hopefully, it will be concluded in this fiscal," he told reporters.

Last month, Bhattacharyya said the company was in advanced talks with Peabody to acquire a stake in one of its Australian mines and was also looking at a long-term offtake agreement.

The state-run firm recently raised $3.4 billion in India’s largest initial public offering.

He said on Wednesday Peabody had offered 10% in one of its companies and “we are trying to make it a little more so that we have representation on the board."

Bhattacharyya added that Coal India was looking at “a specific property" of US-based Massey Energy.

Last week, he batted down media reports Coal India was mulling acquisition of the whole company, saying “neither they have offered us nor we have considered."

Indian companies are increasingly looking abroad to boost resources as the country’s rapid industrialisation uses more and more local producing assets.