The Economic Times reported Coal India is in the early stages of negotiations with probable partners in Australia, and the governments of Mozambique, Indonesia and South Africa to explore options of acquiring mining leases.

To facilitate the deal it is looking to float subsidiary Coal Videsh, which will focus on exploration and mining abroad, with a focus on coking coal and low-ash content non-coking coal.

Despite its massive reserves, India holds little coking coal and low-ash content non-coking coal to keep up with domestic demand.

Coal India chairman Shashi Kumar told The Economic Times that it wished to reduce its dependence on imported coking coal and would use Coal Videsh to mine abroad and set up joint ventures in other countries.