COAL India (CIL) has rejected proposals from Rio Tinto to develop its abandoned and underground mines, saying the company “falls short of expertise”.
The mines, which are expected to contain over 1,665Mt of coal, are being eyed by 12 corporate majors, including Reliance Infrastructure, Indo Australian Mining and Bucyrus of Germany.
While CIL claims Rio is a “great company”, chairman, Partha S Bhattacharyya, says the global miner “has not previously developed any abandoned mines” and its experience in underground mining “falls short” to take up the venture.
Besides seeking a turn-key contract for the underground mines, Rio Tinto has also expressed interest in developing 18 abandoned mines in a joint venture with CIL.
CIL plans to produce about 100Mt of coal from its underground operations by 2017.
Rio is awaiting a final decision regarding any future developments.
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