PTI reported that Coal India has sought approval from the Indian coal ministry to buy an unlisted entity of a listed overseas firm.

Mr NC Jha CIL CMDsaid “We have already written to the government on certain issues and have asked for its permission to buy an unlisted entity of a listed company. Once we hear from the government on the issue we will take a call.”

CIL awaiting government response on certain issues pertaining to its plan of picking up a 15% stake in US based firm Peabody Energy mining project in Australia. Both the companies are mulling a joint venture company to implement the project at Peabody owned Wilkie Creek coal mine, in Queensland, Australia.

Sources said the US based firm is likely to hold 85% in the JV.

The proposal had come up for discussion at the CIL board meeting last month, wherein it was decided to refer the proposal to the ministry for certain clarifications.

An official at the ministry said “The Coal Ministry had earlier said that acquisition of the property in the overseas market will be confined to listed companies. He added that however since the proposed company would not be listed, the board had decided to refer the proposal to the government seeking clarifications whether CIL can go ahead with the deal if the principal (Peabody) is listed.”

CIL had said it was likely to buy up to a 15% stake in Peabody Energy Corp Australian assets in early 2011-12 for an estimated USD 100 million

(Sourced from PTI