NTPC exits from ICVL - Report

Friday, 02 Dec 2011

It is reported that NTPC is exiting from International Coal Ventures.

(Sourced from India Infoline)

India's SAIL to invest $12 bln in 4 overseas plants

Mon Feb 21, 2011 7:36am GMT

* Steelmaker plans to fund upto 80 percent through debt

* Plant start-up will take 3 years from initial agreement

* Overseas plants likely to produce 3 mln T of steel each (Adds quotes, background)

NEW DELHI, Feb 21 (Reuters) - Steel Authority of India (SAIL) (SAIL.BO: Quote) will build four overseas steel plants with a total $12 billion investment, which will be mostly funded through debt, its chairman said on Monday.

The state-run company is also looking for a strategic investor for its proposed plants in Indonesia, Oman, Mongolia and South Africa, which would produce three million tonnes (MT) of steel each, C.S. Verma told reporters.

"Funding of $12 billion will be met through 70-80 percent of debt and the rest 20-30 percent through equity," Verma said.

Last week, the Indian government put off a planned share sale in SAIL to the next fiscal year that begins in April, citing unfavourable market conditions. [ID:nSGE71H04V]

Verma said on Monday projects may take three years to start up once agreed.

"We are talking to the government of the countries where we plan to set up steel plants and it will take about three years to start the plants from the date of signing of (memorandum of understanding) with these governments," he added.

SAIL is part of the International Coal Ventures Ltd (ICVL) consortium which has bid for a Mongolian coal mine and is looking to buy overseas coal assets in countries such as Australia, Indonesia and the United States. [ID:nSGE712058]

Other companies in the group are utility NTPC (NTPC.BO: Quote), iron ore miner NMDC (NMDC.BO: Quote), Coal India (COAL.BO: Quote) and Rashtriya Ispat Nigam Ltd.

Last month, ICVL decided not to counter Rio Tinto's $3.9 billion bid for Australian coal miner Riversdale (RIV.AX: Quote).

Verma also said coal supplies from Australia should improve as the country recovers from recent floods.

"As floods recede in Australia, coking coal supplies have improved and it will have an impact on domestic steel prices." (Reporting by Mayank Bhardwaj; editing by Malini Menon,sourced:Thomson Reuters)

Tags: Indian steel industry news, investment, steel plant

ICVL decides not counter bid for Riversdale Mining

Friday, 28 Jan 2011

Reuters reported that Indian state owned consortium International Coal Videsh Limited has decided not to counter Rio Tinto's AUD 3.9 billion bid for Australian miner Riversdale Mining.

ICVL, which had earlier said it would consider a bid and had hired Citigroup to do due diligence on the firm, on Thursday said it decided against an offer.
Mr CS Verma charman of Steel Authority of India Limited and head of ICVL told reporters “We discussed in detail pricing scenario, future outlook, resources available and took a conscious decision not to bid.”

Mr PS Bhattacharya chairman of Coal India Limited told Reuters that “We did not think it was an appropriate case to bid higher than Rio's offer.”
But he added that the consortium is scouting for coal assets in other countries and said “You should see some action in the next couple of months.”
(Sourced from Reuters)

Mr Verma signs MoU with province of Central Kalimantan in Indonesia

Wednesday, 26 Jan 2011
Mr CS Verma chairman of Steel Authority of India Limited as well as chairman of Indian Coal Videsh Limited signed a MoU with Governor of Central Kalimantan, Indonesia, HE Mr Agustin Teras Narang for development of mineral deposits, setting up of mineral processing facility, steel plant and required infrastructure in the province of Central Kalimantan.
The MoU was signed in the presence of president of Indonesia, HE Susilo Bambang Yudhoyono minister of Commerce & Industry Government of India, Mr Anand Sharma minister of state for external affairs. Mr E Ahamed and senior officials of the government of Indonesia.
The MoU envisages setting up of steel plant and mineral processing facility by optimization of large natural resources of Province of Central Kalimantan, such as coking and thermal coal, iron ore and other minerals for economic development of the Province and meeting the requirement of coal of the promoter companies of ICVL through mutual partnership. While the province will provide ICVL with necessary maps and licenses, ICVL will undertake preliminary survey and exploration activities to find the location and suitability of the quality of minerals and the size of reserves both for domestic use in Indonesia and for exports. A techno economic feasibility study will be undertaken jointly by the two institutions to explore construction and development of mineral processing facility and steel plant of suitable capacity in the region.

Speaking on the occasion, Mr HE Susilo Bambang Yudhoyono said that “Indonesia is rich in coal and other minerals, we can see great cooperation between India and Indonesia to explore opportunities for processing of iron ore and other minerals.” Mr Anand Sharma hailed the MoU as a ‘significant and defining relationship’ between the two institutions. He invited close cooperation in multilateral forum between India and Indonesia, the latter being ‘a growing hub of economic activity’. Underlining the importance of the deal.

Mr CS Verma said that “The MoU marks the beginning of our mutual intent for long term engagement with each other in the area of economic cooperation between both the institutions”.
ICVL is a Joint Venture of SAIL, Coal India Limited, Rashtriya Ispat Nigam Limited, NMDC Limited and NTPC Limited. The MoU is a vital step forward in capitalizing on the synergies between the two institutions for mutual benefit and growth. It is hoped that this will be a beginning of a long term collaboration for efficient execution of sustainable projects

India’s ICVL to Outbid Rio Tinto for Riversdale, Chairman Says

By Pradipta Mukherjee and Rajesh Kumar Singh -

Jan 22, 2011
India’s government plans to offer more than Rio Tinto Group’s A$3.9 billion ($3.9 billion) bid to buy Australia’s Riversdale Mining Ltd., Chairman C.S. Verma said.
International Coal Ventures Ltd., a group of Indian state- run metal and energy companies, will decide on a price for the Sydney-based coal company with mines in Mozambique at a board meeting in New Delhi on Jan. 27, Verma said in an interview in Kolkata today.
Rio Tinto, which offered A$16 a share, said yesterday it received unconditional approval from the Australian Treasurer to buy Riversdale. sourced:bloomberg

International Coal Ventures Pvt Ltd. to bid for coal block in Mongolia

Courtsey news Dow Jones Jan 10, 2011

India's International Coal Ventures Pvt plans to bid for developing huge coal reserves in Mongolia's Tavan Tolgoi mining deposit, sources reported.
Government officials and industry executives said that ICVL's interest in the Mongolian block comes at a time when coal and other resource sectors are seeing a wave of multibillion dollar mergers and acquisitions activity globally, much of it driven by increasing consumption in emerging economic giants China and India.
The Indian company is lining up for a tender offer by the Mongolian government scheduled January 17 to develop part of the Tavan Tolgoi mine in the country's southeast. The mine contains some of the world's largest unexploited reserves of coking coal, a key raw material for making steel. Overall, the mine has an estimated coking and thermal coal reserves of 6.4 billion tonnes.
A mines ministry official told Dow Jones Newswires that ICVL will likely bid for a share in the mine's western block with reserves of 1 billion tones.
About 70% of the block is likely to be coking coal, for which Indian steel companies mostly rely on imports, he added.
If ICVL bids, it will face stiff competition from Japanese and Korean companies.