SAIL-Tata Steel JV seeks to buy overseas coal assets.

Less than three weeks after acquiring a large coal property in Mozambique, Steel Authority of India Ltd is looking for more. Together with Tata Steel Ltd., the state-run company is scouting for fresh acquisition of overseas coal assets to ensure continuous supply of coking coal, a key raw material in steel production.

S&T Mining, a joint venture between Tata Steel and SAIL, has invited applications for prime coking coal assets with a minimum reserve of 100 million tonnes. It is open to the option of stake purchase, long-term offtake or any other arrangement to secure long-term supply of coking coal. The last date to submit applications is September 10. The JV, formed in 2008 to secure, develop and operate coal mines for its promoters, has remained largely dormant all these years. However, that is clearly poised for change.

'We will be getting increasingly active over the next few months at S&T Mining and will hopefully be in a position to take up new projects,' SAIL Chairman CS Verma said recently.

ET