Coal M&A: As firms chase overseas mines

India's coal, steel and power firms have been scouting for coal assets overseas to feed power plants at home. The energy-hungry nation aims to halve a near-14% peak-hour power deficit within two years

India's conglomorate Adani is to buy the 25 million tonnes a year coal export terminal at Abbot Point in Queensland, Australia.

Indian trader Knowledge Infrastructure has signed a joint venture with Indonesian miner PT OSO International to develop medium-grade, bituminous coal mines in Kalimantan.

India's Aditya Birla, JSW Steel and Jindal Steel & Power are among firms shortlisted for Australian coal explorer Bandanna Energy in a potential billion-dollar-plus sale, sources said on Monday.

Australia's Linc Energy last year agreed to sell its Galilee coal project to Adani Enterprises in a cash and royalty deal worth USD 2.7 billion, marking the largest single mine investment by an Indian firm in Australia.

India holds 10% of the world's coal reserves but local supplies are falling short of demand as the country builds more power plants, and as domestic coal projects run into environmental and land acquisition delays.

The country is likely to import 135 million tonnes of coking and thermal coal in the financial year that began on April 1.

Coal India, which accounts for nearly 80% of India's coal output, had said late last year that it has set aside USD 1.2 billion for overseas buys and was evaluating few proposals for buying stakes in overseas coal mines.

The company, however, has not been able to strike a deal in recent years.

In January, Indian state group International Coal Ventures, of which Coal India is a member, decided against countering Rio Tinto's USD 3.9 billion bid for Mozambique-focused miner Riversdale.