Deloitte to help CIL to form subsidiary co in South Africa

With the country facing acute coal shortage, state-run CIL has appointed Deloitte to help the coal PSU to form a subsidiary firm in South Africa to acquire mines.

"(Coal India ) has appointed Deloitte which would assist the company in formation of a subsidiary company in South Africa," a source close to the Development said. CIL had earlier invited an expression of interest for
appointment of consultant.

The state-owned miner has already signed pact with the government of Limpopo, South Africa, for jointly identifying, exploring and developing coal mines.

The government had said that to execute the pact which CIL signed with Limpopo, it would be required to set up a subsidiary in South Africa.

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The government of Limpopo, the northernmost province of South Africa, had approached CIL requesting it to form a joint venture with one of its public sector firms for acquiring coal mines there.

The PSU has put together a war-chest of Rs 6,000 crore for acquisition of mines overseas.

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The world's largest coal miner has zeroed in on three unlisted overseas coal assets for acquisition. CIL, which accounts for more than 80 per cent of the domestic coal production, missed its revised 2011-12 production target.

It achieved only 435.84 million tonnes (MT), as against the targeted 447 MT. The demand-supply gap of the fossil fuel was 161.5 million tonne last fiscal.