Coal India in talks to buy Indonesia mine for up to $1 bn

Coal India, the world's largest coal miner, is in advanced talks to buy up to 40% stake in Indonesia's Golden Energy Mines in a deal valued at between USD 750 million and USD 1 billion, three sources with direct knowledge said on Thursday.

Golden Energy is a coal mining subsidiary of energy and infrastructure firm Dian Swastatika Sentosa, and is estimated to have 400 million tonnes of reserves.
It owns 10 coal mining areas across Indonesia including in Sumatra and Kalimantan islands in the world's top exporting nation of coal for power plants.
State-run Coal India is half way through the due diligence for the asset and a final bid will be submitted by the end of June, two of the sources told Reuters.
United Tractors, Indonesia's biggest heavy equipment provider controlled by the country's largest listed firm Astra International, has withdrawn from the bidding process for the asset, sources said.
The sources declined to be named as the information is not public. Officials at Coal India, headquartered in Kolkata, and Dian Swastatika in Jakarta could not be reached for a comment.
Indian 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 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 coal in the financial year that began on April 1.