Coal India In Talks To Buy Indonesia Mine

<?xml version="1.0" encoding="UTF-8"?><root available-locales="en_US," default-locale="en_US"><static-content language-id="en_US"><![CDATA[<p>Coal India, the world's largest coal miner, is in advanced talks to buy up to 40 per cent stake in Indonesia's Golden Energy Mines in a deal valued at between $750 million and $1 billion, three sources with direct knowledge said on Thursday.<br><br>Golden Energy is a coal mining subsidiary of energy and infrastructure firm Dian Swastatika Sentosa, and is estimated to have 400 million tonnes of reserves.<br><br>It owns 10 coal mining areas across Indonesia including in Sumatra and Kalimantan islands in the world's top exporting nation of coal for power plants.<br><br>State-run Coal India is half way through the due diligence for the asset and a final bid will be submitted by the end of June, two of the sources told Reuters.<br><br>United Tractors, Indonesia's biggest heavy equipment provider controlled by the country's largest listed firm Astra International, has withdrawn from the bidding process for the asset, sources said.<br><br>The sources declined to be named as the information is not public. Officials at Coal India, headquartered in Kolkata, and Dian Swastatika in Jakarta could not be reached for a comment.<br><br>Indian coal, steel and power firms have been scouting for coal assets overseas to feed power plants at home. The energy-hungry nation aims to halve a near-14 percent peak-hour power deficit within two years.</p>