Indian steel company may invest in BHP's RI coal mine

Steel Authority of India Ltd., the nation's biggest steel maker, may acquire a stake in an Indonesian coal mine operated by BHP Billiton Ltd. to ease shortage of the fuel that forced it to cut production in April, The Jakarta Post reported quoting the bloomberg on Friday in its online edition.

"The company is looking at various properties of BHP Billiton, including Indonesia, but no decision has been made as yet," Debjit Rath, company spokesman said in a telephone interview today from Delhi. "We are looking at buying coal which has low ash content."

In September, Steel Authority said it would invest in mines run by the world's biggest miner, BHP Billiton.

Supply of coal has been a cause of concern after China; the world's fastest growing steel market, reduced the sale of coke to India to help Chinese steel makers to meet local requirements.

Steel Authority is close to acquiring stake in a coal-mining venture in Indonesia, the Press Trust of India reported on Friday, citing sources it didn't identify.

Steel Authority imports 8.5 million of the 13 million tons of coking coal it uses each year, according to the company.

BHP Billiton is planning to develop its huge deposit of metallurgical coal in Maruwai, which is located in Central and East Kalimantan by 2010 with production capacity of 10 MTPA. The company is expected to complete the project's feasibility study this year. (*)