MUMBAI (Reuters) - India’s Aditya Birla Group is in talks with American thermal coal miner Drummond Company DRMND.UL to buy a “significant stake” in its coal mines in Colombia for $1 billion, the Financial Express said in a report.
The telecom-to-cement conglomerate is looking to pick up rights for about 20 percent to 40 percent of the coal produced in these mines, the report quoted a source with direct knowledge of the development.
The Indian conglomerate is looking to strengthen its mining business and utilize coal for its captive power plants to make aluminum in India, the report said.
Aluminum maker Hindalco Industries (HALC.NS), part of the Aditya Birla Group, has been seeking environmental clearance for mining coal at Mahan in Madhya Pradesh state to feed its captive power plant and a new smelter project.
Reuters could not immediately reach a group spokesman for comments.
Reporting by Prashant Mehra and Nandita Bose; Editing by Gopakumar Warrier