It is reported that Indian steel maker Bhushan Steel Limited has increased its holding in Queensland based junior coal hopeful Bowen Energy, as it heads towards 64% control of the company.

Bowen announced that Bhushan had paid AUD 560,000 to take its holding to 19.91% and that the two companies had also entered into an agreement for Bhushan to subscribe to 100 million of Bowen shares for AUD 32 million.

The first 50 million share purchase, which will take Bhushan's interest to 50.5%, will be voted on at Bowen's AGM in November.

Mr Kevin Nichol MD of Bowen Energy said that he is confident that it would gain full support. He said the remaining 50 million shares, valued at AUD 16million, would be sought over the next 18 months and the funds paid in four tranches during that period, taking Bhushan's final stake to around 64% at the end of the process.

Mr Nichol said that "It is the best option any small company in our space could have. Bhushan will control the company and the board at shareholder level, closing the door to other end users, but opening the door for other institutional investors.”