CIL may extend CBM tender deadline

Wednesday, 17 Aug 2011

BL reported that Coal India Ltd may extend the August 17 deadline for receiving bids for extraction and commercial utilization of coal bed methane from five mining assets.

According to sources, a turf battle between the key union ministries of coal and, petroleum and natural gas has already forced the company to extend the tender deadline, twice, from June.

The tender was slated to pave way for extraction of nearly 25 billion cubic metres of CBM and ensure safe underground mining of over 100 million tonnes of medium-grade coking coal in Jharkhand. High concentration of gas has made underground mining unsafe in the identified assets.

According to sources, while the coal ministry has extended its tacit approval to CIL on the issue, the company was yet to receive any formal clarification on closure of the tender and awarding the same as per schedule.

According to the tender, issued in April, CIL invited private players to invest in extraction of gas and sell the same in the open market to ensure returns. CIL was slated to get a share of the profit from sale of gas.

The ministry of petroleum and natural gas felt that the tender was overlapping in nature with CBM Policy and, should not be awarded without the requisite approval from the upstream regulator. The coal ministry was also urged to take cabinet approval on the issue.

The coal ministry, however, felt that the ambit of the CBM Policy does not include the CIL leasehold area. Also, according to the Mining Act there was no space for a second licensee in a particular mining leasehold area. It is understood that the coal ministry was yet to submit any proposal for cabinet committee's consideration in this regard.

(Sourced from BL)

Kalahari Minerals says in takeover talks

Mon Mar 7, 2011 11:25am GMT

* Kalahari confirms in talks with third party, may lead to offer
* Shares in Kalahari rise 13 percent

LONDON, March 7 (Reuters) - Kalahari Minerals (KAH.L: Quote) on Monday said it was in talks with an unnamed third party, which may lead to an offer being made for the company, sending its shares to an all time high.

Shares in the UK-listed miner, which holds around 43 percent of Extract Resources (EXT.AX: Quote) (EXT.TO: Quote), soared as much as 13 percent to a highest ever 293.50 pence on the news, as it said discussions were ongoing and that a further announcement would be made when appropriate.

Kalahari said it was also in talks to simplify its shareholder structure with Extract in a bid to combine assets with Rio Tinto in Namibia.

The company wants to combine Extract's Husab Uranium project with the neighbouring Rossing Uranium mine owned by Rio Tinto (RIO.AX: Quote) (RIO.L: Quote). It added that there is no certainty the parties will reach any agreement.

Extract's chairman told Reuters in February that the company had no intention to sell its Husab uranium deposit, the largest of its kind in the world.

Analysts have long said Extract could be an eventual target for Rio, whose Rossing mine is near Extract's Husab deposit. Speculation was renewed last month week when the two companies said they were in talks to combine their uranium projects.

Shares in Kalahari were up 10.47 percent at 11.06GMT, giving the company a total market value of 705.6 million pounds.

(Reporting by Lorraine Turner; Editing by Rhys Jones,sourced:Thomson Reuters)