Mineweb reported that in a major tug of war between two Indian firms for coal assets Aditya Birla Group has decided to pit itself against JSW Steel, for control of Australian coal miner New Hope Corporation which is worth around USD 5.2 billion at current valuations.

New Hope which operates the Auckland coal mine in Queensland and put itself up for auction last month produces and exports around six million tonnes of thermal coal a year. It also owns an export terminal.

As Indian companies vie with others to acquire cheaper mining assets in Australia, New Hope which had a capitalization of about USD 4.5 billion before the announcement, said it is in talks with several suitors, including one from China.

Even as JSW Steel had sent across officials last month to evaluate New Hope's assets ahead of making a formal offer, the Birla group is reportedly close to appointing an advisor for the bidding process, according to informed officials. The Birla group, which also owns Hindalco Industries, India's top aluminium producer and UltraTech Cement, the country's largest cement producer, needs the coal for its group companies.

Among those interested in the Queensland based thermal coal producer are China's Yanzhou Coal Mining Co Ltd and London listed Xstrata.

(Sourced from Mineweb.com)