Coal India seeks move into metals abroad to combat falling revenues

By Dale Benton
Share
One of the largest coal miners in the world is making a move towards buying metal mines abroad, as it bids to reduce its operating costs and move away f...

One of the largest coal miners in the world is making a move towards buying metal mines abroad, as it bids to reduce its operating costs and move away from a reliance on fossil fuel.

Coal India, a state-run company, plans to form two units. One unit to manage local iron ore mining, bauxite and manganese, while the other will expand into copper and nickel mining in foreign countries, Reuters reports.

“The plans of Coal India to enter into metal mining business both in India and abroad are in a very nascent stage, and of strategic and confidential nature,” the company said.

In a statement to Reuters, a global investment analyst believes the move into metals represents Coal India’s ambition to “firm up revenues.”

Related stories:

Vedanta Resources records 40% profit increase for 2017

China's Australian coal imports continue to rise

Mining global – September 2017

“It may not happen for at least the next couple of years, given the track record of Indian PSUs (public sector undertakings) investing in other countries,” said Gautam Chakraborty, an analyst at Emkay Global Financial Services Ltd.

Coal India has also seen its quarterly profits fall for five straight quarters amid rising employee costs, and is also locked in wage negotiations with its over 300,000-strong workforce affiliated to strong trade unions.

Share

Featured Articles

Intel Ridding its Supply Chain of Conflict Minerals

Intel first began to work towards responsibly sourced conflict minerals from the Democratic Republic of Congo and adjoining countries about 12 years

IEF on 'Paradox' of Mining's Role in Quest for Clean Energy

International Energy Forum says mining is the 'paradox' at heart of quest for clean energy but recognises the industry is addressing sustainability issues

ABB Reduces its Industrial e-Waste Impact

Leading global engineering company ABB – with strong mining presence – cuts industrial e-waste by promoting reuse and recycling in a push for circularity

Mining Automation Drives Efficiency and Safety Gains

Digital Mining

New Schneider SBS Energy Solution for Mining Sector

Smart Mining

Mining Conflicts Hit Communities As Battery Demand Soars

Sustainability