Economic Times reported that India Aditya Birla group is considering a bid for a 10% to 15% stake in Indonesian coal miner Bumi Resources Tbk PT to secure coal supplies for its expanding cement and aluminium operations.

As per report, the transaction along with an offtake agreement could be worth over INR 10 billion.

The paper quoted an unnamed group official as saying that "I wouldn't say we have made up our mind, but to have a share in one of the largest coal companies would be an attractive option."

The telecoms-to-cement conglomerate requires thermal coal for group companies Hindalco Industries, India top aluminium producer, and UltraTech Cement, the country's largest cement producer.

The group has said to have shown interest in bidding for several overseas coal assets recently including for Australian coal miner New Hope Corp.

India holds 10% of the world coal reserves, but supplies have fallen short of rising demand from power plants as well as steel and cement companies because of environmental and land acquisition delays forcing expensive imports.

(Sourced from Economic Times)