Coal India has entered into discussions to acquire nearly 40% stake in Golden Energy Mines of Indonesia for a purchase price valued at between $750m and $1bn.

Golden Energy Mines is a coal mining unit of Dian Swastatika Sentosa, an energy and infrastructure firm.

Golden Energy Mines is estimated to have coal reserves of approximately 400 million tonnes, and the company owns ten coal mining areas in Indonesia.

Coal India is half way through the due diligence for the asset and a final bid will be submitted by the end of next month, Reuters said.

Indonesia’s heavy equipment provider United Tractors has withdrawn from the bidding process for the asset.