Coal India May Buy Massey Energy Mine

Coal India, the world's biggest producer of coal, may purchase a mine owned by Massey Energy Co. (MEE), Bloomberg reported Friday.

The deal would be the state-owned company's first asset purchase in the U.S.

Kolkata-based Coal India is on the hunt for acquisitions to meet growing demand from power stations and steel mills in the fast-growing Asian economy.

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Coal India has set aside 60 billion rupees ($1.4 billion) for acquisitions in the year ending March. On Oct. 25, Chairman Partha Bhattacharyya said the company was looking at assets in the U.S., Australia and Indonesia.

"Being a state-run company, they have a responsibility to meet this demand," said Alex Mathews, head of research at Geojit BNP Paribas Financial Services. "The timing is right now, as with recovering economies, prices of assets will only rise."

Coal India and Massey Energy both declined to comment to Bloomberg News.

Also See: High Stakes in Labor Department's Massey Coal Mine Case