Coal Ventures completes due diligence of 2 Mozambique blocks
Kolkata: Coal Ventures International (CVI) has completed due diligence of two Mozambique blocks on offer. The joint venture, a SPV floated by Coal India, SAIL, Vizag Steel, NTPC and NMDC for acquisition of coal blocks overseas, is also planning to appoint a global investment banker shortly for acquisition of metallurgical and thermal coal assets, reported Business Line. "One of the blocks offered does not have commercially exploitable resources. The other block has some coal reserves. Our technical team is evaluating the same. The report will be up for discussion before the steering committee of CVI in end February," a source said. "This was our first acquisition attempt in Mozambique and we are successful in acquiring the geological model of coal reserves there. This will help us in future to assess the opportunities available in that country more efficiently," the source said. Apart from acquisition attempts in Mozambique, Coal Ventures has also invited expression of interest recently from investment bankers to help acquisitions in Australia, Canada, the U.S., Indonesia, Zimbabwe, South Africa and others. CVI has created a $2.7 billion fund for the acquisitions. Of the total, $1.8 billion is in debt and the rest $900 million is in equity.