ICVL bids for stake in Anglo American's Grosvenor coal mine
15 March 2011
Indian state-run International Coal Ventures (ICVL), a consortium of five state-run metals and energy companies, has made a bid to acquire a 12-per cent stake in one of Anglo American's Australian coal mine for approximately $200 million (Rs900 crore).
ICVL, a joint venture company comprising of utility NTPC, Steel Authority of India Ltd, iron ore miner NMDC, Coal India and Rashtriya Ispat Nigam Ltd, has bid for Anglo American's Grosvenor mine located in the Bowen Basin coal region in Central Queensland.
Grosvenor is a greenfield underground coal mine producing up to 7 million tonnes per year, processed to yield approximately 5 million tonnes of coking coal for export. The mine is expected to operate for approximately 30 years.
ICVL's bid of $200 million values the Grosvenor mine at around $1.6 billion.
London-based Anglo American, one of the world's largest diversified mining companies had announced in October 2009 a major restructuring of the company that would see it sell its non-core assets worth $7 billion in order to focus on its core mining portfolio and streamline the group's management structure.
It has since sold some key coal assets in Australia including its interests in five undeveloped coal assets to a consortium led by Korea Electric Power Corp, steelmaker Posco and Australia's Cockatoo Coal for $500 million in cash in July last year.