SAIL-led joint venture ICVL to buy coal blocks in Poland

International Coal Ventures Private Ltd (ICVL), a consortium led by Steel Authority of India Ltd (SAIL), is looking to buy coal assets in Poland, chairman of the state-run steel maker C S Verma said today.

Most steel producers in India, including the five group companies of SAIL as also private sector steel companies, are dependent on imported coal, making the country the world's third-largest coal importer.

ICVL, which has been scouting for mines since 2009, is looking at acquisitions in Africa and Europe, Ajay Mathur, its chief executive, said, adding that the JV has already completed due diligence for the Polish assets.

"We're doing due diligence in three to four geographies such as Indonesia, Mozambique and the United States," said Mathur.

Mozambique, he said, is logistically well suited for India.

"Whatever has come out of Vale and Rio's (operations) from Mozambique looks to be of good quality," he said, referring to the commodity giants' mines in the African nation.

According to Verma, a deal is expected in the next few months.

Private sector JSW Steel Ltd, India`s third-largest steel maker, has already bought coking coal mines in the US, Verma pointed out.

India`s coal imports rose 21 per cent to 152 million tonnes last year. India is depended on imports for thermal coal that is used to generate power.

India's demand for steel making coal is expected to triple by 2020-21, with about 90 per cent of that coming from abroad.