Skip to main content

Coal India Ltd looks to overseas acquisitions as JP Morgan issue company with downgrade

World Coal,

The leading financial services firm, JP Morgan, has downgraded stock in Coal India Ltd to “underweight” from “neutral”, while also downgrading state-owned NMDC Ltd to “neutral” from “overweight”.

The investment bank says Coal India's downgrade was driven by its assessment of potential coal production and prices.

The global coal market has seen continued downward trends over recent years.

Coal India Ltd, meanwhile, has announced plans to form a panel of consultants, which would help the PSU in acquiring, developing and operating coal mines overseas. The coal major is eyeing assets abroad to meet the domestic demand.

"Coal India Limited (CIL) intends to create a panel of reputed technical consultants to assist its venture of acquisition, development and operating coal mines abroad," Coal India said on its website. "The last date for submission of responses to EOI (Expression of Interest) ... shall be June 23," the PSU said.

Following the Indian General Election, the previous head of Coal India, S. Narsang Rao, has stepped down from his position amid wholesale ministerial changes.

Aggressive expansion overseas

The Indian Coal Ministry has stipulated its desire to acquire coal mines overseas in “an aggressive manner to meet the country’s energy requirements.”

CIL has targeted coal projects in Australia and Africa. The company’s subsidiary, Coal India Africana Ltd, owns a 5-year exploration and development permit for two mines in Mozambique.

Despite large domestic reserves of coal, the Indian government has also said it will import large amounts of the black stuff.

Written by Sam Dodson

Read the article online at:

You might also like


Embed article link: (copy the HTML code below):