Coal India in talks to buy Golden Energy Mines to $1 bln-sources

Coal India, the world's largest coal miner, is in advanced talks to buy up to 40 percent stake in Indonesia's Golden Energy Mines in a deal valued at between $750 million and $1 billion, three sources with direct knowledge said on Thursday. 

Golden Energy is a coal mining subsidiary of energy and infrastructure firm Dian Swastatika Sentosa , and is estimated to have 400 million tonnes of reserves. 

It owns 10 coal mining areas across Indonesia including in Sumatra and Kalimantan islands in the world's top exporting nation of coal for power plants. 

State-run Coal India is half way through the due diligence for the asset and a final bid will be submitted by the end of June, two of the sources told Reuters. 

United Tractors , Indonesia's biggest heavy equipment provider controlled by the country's largest listed firm Astra International , has withdrawn from the bidding process for the asset, sources said. 

The sources declined to be named as the information is not public. Officials at Coal India, headquartered in the eastern Indian city of Kolkata, and Dian Swastatika in Jakarta could not be reached for a comment. 

Indian coal, steel and power firms have been scouting for coal assets overseas to feed power plants at home. The energy-hungry nation aims to halve a near-14 percent peak-hour power deficit within two years. Source: Reuters