State-owned producer Coal India (CIL) has received board confirmation to buy 6mn t of coal in an international term tender, and the firm is preparing for an initial public offering (IPO) in August.
CIL is likely to buy 6,000 kcal/kg coal on an NAR basis at $80-85/t for delivery from December, according to a company source. Material has to be procured for India's power stations by March next year.
We are currently discussing details such as price ranges, delivery dates and grades of coal required, and the tender is expected to be issued at the end of August, the source said. This would be the first time India's largest coal producer has issued a tender to buy coal since it was founded in 1975.
We are issuing a tender now, because we are not producing enough coal in India, the source said. Many consumers have been given mining licences, as they were expected to meet the increase in demand. But they have failed to meet production expectations. And demand for coal from various industries has surged, surpassing expectations and further widening the supply gap, the source said.
CIL is likely to file a draft prospectus for an IPO with the Securities and Exchange Board of India at the end of August. The company aims to raise about $2.8bn by selling 10pc of its shares.
The Indian firm already has reserves of nearly $6.5bn, so the funds raised are likely to be used to develop other industries and the country's infrastructure, the source said.
CIL produced about 430mn t of coal in the year to 10 March. The company intends to produce 462mn t next year, which is still short of India's expected requirement of about 600mn t.
More than 70pc of the coal CIL produces has a calorific value of 4,000 kcal/kg. Up to 22pc of the material produced has a calorific value of 5,500-6,000 kcal/kg, while the remaining is 4,500-5,000 kcal/kg coal.
China Chemical Weekly:China Chemical Weekly is being under hot sale. You can learn the market situation of chemical field, energy field and plastic field. For details, pls contact: wangxiaoqing@netsun.com Brenda
CIL is likely to buy 6,000 kcal/kg coal on an NAR basis at $80-85/t for delivery from December, according to a company source. Material has to be procured for India's power stations by March next year.
We are currently discussing details such as price ranges, delivery dates and grades of coal required, and the tender is expected to be issued at the end of August, the source said. This would be the first time India's largest coal producer has issued a tender to buy coal since it was founded in 1975.
We are issuing a tender now, because we are not producing enough coal in India, the source said. Many consumers have been given mining licences, as they were expected to meet the increase in demand. But they have failed to meet production expectations. And demand for coal from various industries has surged, surpassing expectations and further widening the supply gap, the source said.
CIL is likely to file a draft prospectus for an IPO with the Securities and Exchange Board of India at the end of August. The company aims to raise about $2.8bn by selling 10pc of its shares.
The Indian firm already has reserves of nearly $6.5bn, so the funds raised are likely to be used to develop other industries and the country's infrastructure, the source said.
CIL produced about 430mn t of coal in the year to 10 March. The company intends to produce 462mn t next year, which is still short of India's expected requirement of about 600mn t.
More than 70pc of the coal CIL produces has a calorific value of 4,000 kcal/kg. Up to 22pc of the material produced has a calorific value of 5,500-6,000 kcal/kg, while the remaining is 4,500-5,000 kcal/kg coal.
China Chemical Weekly:China Chemical Weekly is being under hot sale. You can learn the market situation of chemical field, energy field and plastic field. For details, pls contact: wangxiaoqing@netsun.com Brenda
