Live Mint reported that NTPC Limited has appointed a consultant to evaluate two medium sized coal mine acquisitions in Mozambique and Indonesia even as it plans to exit International Coal Ventures Pvt Limited, a consortium of state run firms formed to buy overseas coal mines.

A senior NTPC executive said that "Mozambique and Indonesia deals are at present on the verge of getting materialized."

NTPC needs 166 million tonnes of coal in the year to March 31st 2012, of which around 16 million tonnes has to be imported. The company has already placed orders for importing 12 million tonnes.

NTPC is likely to change its strategy by seeking long term coal supply agreements instead of buying overseas mines, as envisaged in the company’s vision document, NTPC Corporate Plan 2032, drawn up by consulting firm Bain and Co India Pvt Ltd. Bain also advised NTPC to take small stakes in overseas mines to ensure supply security.

Another NTPC executive said that "We never said that if we get a very good opportunity, we will not buy a mine. It all depends upon the opportunity."

Mr Celio Nhachungue, deputy national director of the international relations directorate in Mozambique’s industry and trade ministry, said that there was a lot of interest from Indian companies to enter his country’s mining sector.

Mr Vicente Paulo C Chihale, commercial counselor at Mozambique’s high commission in New Delhi, said that "There are no more coal mines left to be acquired. Foreign companies can now participate in our mining sector through getting into joint ventures with the existing mine holders."

(Sourced from www.livemint.com)