Coking coal valuation tricky for Coal India's foreign ambition
In its move to secure steady coking coal supply for the steel sector which is stressed with price volatility, world's largest coal company, Coal India, is likely to face challenges in valuation of the assets it wants to either acquire or opt for an offtake commitment.According to analysts, coking coal prices have doubled at $ 160 a tonne since the last year resulting in the existing assets being overvalued."At this juncture, when coking coal assets' valuations have shot up substantially, valuating them for acquisition or partnership will be very tricky", an analyst with Motilal Oswal said.In its venture of acquiring coal assets abroad through its subsidiary, Coal Videsh, the company has two choices.A company official said that Coal Videsh can either opt for an outright acquisition of existing and operational assets which will reduce the risk associated with allocation and eventual exploration of coal reserves or opt for partnership with operational firms."Acquisition will call for an .09-03-2017
