ICVL close to buying stake in MEC Coal

International Coal Ventures Ltd (ICVL), a consortium of five Indian state-run companies, is close to "clinching" a deal for buying some stake in Singapore-based MEC Coal, a senior company official said as quoted by Indiatimes.com.

"Yes, we are on the verge of clinching it," SAIL Chairman C S Verma, who also heads ICVL, said. He, however, said the deal was yet to be struck and ICVL was looking at various issues before signing on the dotted lines.

Verma also did not disclose the percentage of stake that ICVL was looking at buying in MEC Coal.

According to industry sources, ICVL is looking at 24 per cent stake in the MEC Coal for about USD 200 million. Through its subsidiary PT Tekno Orbit Persada, MEC Coal is developing two coal mines in East Kalimantan, with an estimated reserves of 1.5-2 billion tonnes.

Recently, ICVL had signed a memorandum of understanding (MoU) with the Indonesian government for developing mineral assets, setting up of processing facility, steel plant and other infrastructure in Central Kalimantan.(*)