Indian Metals and Ferro Alloys said that it has acquired 70% stake in a coal mine in Indonesia. The acquisition was done through Indmet Mining Pte Limited, a step down subsidiary incorporated in Singapore specifically for the purpose. It is the first foreign acquisition.
Mr Prem Khandelwal CFO and company secretary of IMFA group told ET that "We have taken up 70% stake in the property through a step-down subsidiary based in Singapore. The total cost of buying the stake will be USD 8.75 million. We will develop the mine, including the necessary infrastructure to make it operational.”
The mine is located in the Central Kalimantan region of Indonesia. The remaining 30% stake in the project is held by Indonesian businessmen who also hold the crucial licenses or IUPs in local parlance.
The acquisition also marks the IMFA group's initial foray into coal trading abroad. A top IMFA group executive said that "We hope to get the necessary government approvals within a year. Once the mines are developed, the coal extracted will be used to take up merchant sales in and around Indonesia.”
The coal belongs to thermal grade with a calorific value of 6,000 kilo calories. While the group is planning to have the requisite infrastructure linkages in place within a year, the partners will have to pump in funds to set up a road link to evacuate the coal.
Mr Khandelwal said that "The quantum of reserves in the coal mine is difficult to ascertain since a detailed assessment is yet to be done. Currently, drilling operations are on at the site. We will be able to get an idea of the amount of reserves after it is complete.”
Depending on a study on the infrastructure required to be set up in the area, the group will be in a position to finalize the investment required for maintaining sustained operations.
(sourced from ET)
Mr Prem Khandelwal CFO and company secretary of IMFA group told ET that "We have taken up 70% stake in the property through a step-down subsidiary based in Singapore. The total cost of buying the stake will be USD 8.75 million. We will develop the mine, including the necessary infrastructure to make it operational.”
The mine is located in the Central Kalimantan region of Indonesia. The remaining 30% stake in the project is held by Indonesian businessmen who also hold the crucial licenses or IUPs in local parlance.
The acquisition also marks the IMFA group's initial foray into coal trading abroad. A top IMFA group executive said that "We hope to get the necessary government approvals within a year. Once the mines are developed, the coal extracted will be used to take up merchant sales in and around Indonesia.”
The coal belongs to thermal grade with a calorific value of 6,000 kilo calories. While the group is planning to have the requisite infrastructure linkages in place within a year, the partners will have to pump in funds to set up a road link to evacuate the coal.
Mr Khandelwal said that "The quantum of reserves in the coal mine is difficult to ascertain since a detailed assessment is yet to be done. Currently, drilling operations are on at the site. We will be able to get an idea of the amount of reserves after it is complete.”
Depending on a study on the infrastructure required to be set up in the area, the group will be in a position to finalize the investment required for maintaining sustained operations.
(sourced from ET)
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