By Vikas Srivastav
Mumbai: Mercator Lines plans to acquire another 25 million tonne coal mine in Indonesia from a local company Karya Putra Borneo in next two months for Rs 250 crore investment.
Atul Agarwal, MD, Mercator Lines, told Financial Chronicle, “We are in talks with Indonesian company Karya Putra Borneo for a coal mine with capacity in excess of 25 million tonne. The discussion is in final stages and we hope to conclude the deal in next one or two months.”
The company aims to take its total mining capacity to more than one million tonne while increasing the trading to around 8 million tonne from current 7 million tonne this financial year, said another senior company official.
The company is concluding the acquisition and expects the production to start from this mine in the fourth quarter of this financial year.
Mercator Lines currently holds 100 per cent in two mines in Petangis with proven reserves of 15 million tonne and 50 per cent in mines in Kalimantan proven reserve of 30 million tonne. This would now include the 45 million tonne acquired recently.
Coal business is expected to play a significant role in the companies overall business growth after it contributed around 45 per cent to the topline and around 50 per cent to the profit before tax in fiscal 2010-11.
Kotak Securities in a report said, “Going forward, Mercator would primarily concentrate on the coal business which would act as a hedge for the company against the cyclical shipping business.” The brokerage firm estimates the company will mine around 1.26 million tonne per annum from the current around 8,50,000 tonnes.
(sourced MyDigitalFC)
Atul Agarwal, MD, Mercator Lines, told Financial Chronicle, “We are in talks with Indonesian company Karya Putra Borneo for a coal mine with capacity in excess of 25 million tonne. The discussion is in final stages and we hope to conclude the deal in next one or two months.”
The company aims to take its total mining capacity to more than one million tonne while increasing the trading to around 8 million tonne from current 7 million tonne this financial year, said another senior company official.
The company is concluding the acquisition and expects the production to start from this mine in the fourth quarter of this financial year.
Mercator Lines currently holds 100 per cent in two mines in Petangis with proven reserves of 15 million tonne and 50 per cent in mines in Kalimantan proven reserve of 30 million tonne. This would now include the 45 million tonne acquired recently.
Coal business is expected to play a significant role in the companies overall business growth after it contributed around 45 per cent to the topline and around 50 per cent to the profit before tax in fiscal 2010-11.
Kotak Securities in a report said, “Going forward, Mercator would primarily concentrate on the coal business which would act as a hedge for the company against the cyclical shipping business.” The brokerage firm estimates the company will mine around 1.26 million tonne per annum from the current around 8,50,000 tonnes.
(sourced MyDigitalFC)
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