“We have plans to invest in the U.S. only for high quality thermal coal,” said CIL Chairman Partha S Bhattacharya.
He said the company has no plans to raise coal prices this fiscal but plans to better its margins by raising the level of washed coal to 40 per cent from the existing level of three per cent.
Washed coal, he pointed out, is value-added product that undergoes processes leading to a cut in its ash-percentage meaning better price margins. It has targetted to sell 300 million tonnes per annum of washed coal as against 13 mtpa at present.
According to Bhattacharyya, CIL is among the least cost producers with the current cost of production standing at $12 per tonne. On the mining policy, he said the company may also fall its ambit, which effectively means that the company will have to share 26 per cent of its profit with the locals where its mines are located.
The IPO of the coal major will close on October 21, 2010 and the CIL scrip will listed in BSE and NSE on November 4. The book-running lead managers (BRLMs) to the IPO are Citigroup Global Markets India, Deutsche Equities (India), DSP Merrill Lynch, Enam Securities, Kotak Mahindra Capital and Morgan Stanley India.