July 25, 2008

ArcelorMittal proposes alliance with CIL for abandoned mines

The Hindu reported that ArcelorMittal is keen on entering coal mining sector in India and has sent a letter to the coal ministry stating its intent on tying up with the coal major Coal India Ltd.

The news was confirmed to The Hindu by a senior official in the coal ministry. He said that “We have received a letter from the group which is keen on participating in a joint venture on abandoned coal mines of CIL.” He added that the comments of CIL have been sought on the matter.”

Mr PS Bhattacharyya chairman of CIL refused to comment on this matter.

But as per the report, the issue of abandoned mines was discussed at a meeting of the research and development apex committee of CIL, held at the corporate headquarters earlier this week. Sources said that a study was now being done by CIL to find out the number of coal mines and also the reserves that they carry of thermal coal or coking coal.