CIL plans to acquire stake in Australian coal tenement

Coal India Limited is planning to acquire an equity stake in the Galilee coal tenement of Adani Mining Pty Limited in Australia.

AMPL is wholly owned by Adani Enterprises Limited, a listed entity in India.

AEL has proposed to offer a 5% discount on the price of coal of GCV 5000 Kcal/kg, based on the Newcastle index, after necessary quality adjustments.

This asset is located in the Galilee basin of Queensland state in Australia and covers an area of 82 sub-blocks in the eastern part of the basin. Estimated coal resource at the block stands at 8.3 billion tonnes of coal, of which 2 billion tonnes is open cast.

The 500 million tonnes indicated and 7.8 billion tonnes inferred reserves in the block make it the single largest tenement in Australia. The mine is capable of producing coal in excess of 50 MTPA and has life span of over 100 years. It has multiple rail and port options for transport of coal mined from the coal block.