Saturday, 01 Oct 2011
BS reported that NTPC is planning to strike a long term offtake deal with coal companies abroad to match its increasing demand. But due to the higher price range the firm might restrict the import component of the total coal use to 10%though it is looking for acquisition of coal blocks outside India.
Mr Arup Roy Choudhury NTPC Chairman and Managing Director said “We are thinking about signing a long term coal import deal with foreign companies. This would be vital, as we are planning to acquire some blocks in Indonesia, Australia and Mozambique,”
On the other hand, regarding the power producer plan to cap import component to 10 per cent he said that the aim is to source 70% of coal from the Kolkata based Coal India remaining 20% from the firm eight captive mines and about 10% from imports which include the production from acquired mines abroad. The company captive mines have a reserve of 1.8 billion tones. Set to come out of ICVL
Mr Choudhury said “The assets that ICVL had identified are mainly of coking coal. Which can only be used for steel industry requirements? While regarding the Indonesia plans of ICVL, the local government has also decided to ban exports of coal below that calorific value which could have been our requirement.”
The company’s coal requirement for the financial year 2011-12 would be around 160 million tonnes which is expected to zoom to 240 million tonnes in the next year. While this year, NTPC total CAPEX is INR 26,000 crore and it will require investments worth about INR 30,000 crore per year over the next 10 years for expansion plans.
(sourced BS)
Showing posts with label ICVL. Show all posts
Showing posts with label ICVL. Show all posts
Saturday, October 1, 2011
Monday, March 21, 2011
Indian suitors eye Australia's Premier Coal
With Lanco looking to build on its recent Griffin Coal purchase, a new turf war is set to emerge between Indian suitors and some Chinese firms for the $500m assets of Premier Coal.
Mar18, 2011
By Shivom Seth
MUMBAI - Following Lanco Infratech $830 million for Griffin Coal's adjacent mines last year, Premier coal mine, which supplies Western Australia's electricity network, is up for grabs.
In 2007, UBS valued Premier Coal at $500m. Officials at Lanco, who are also said to be eyeing Premier Coal, said that owning both the mines ``made perfect sense'' as the company could ensure efficiencies of scale.
The mine is located near Collie, 200 km south of Perth. India's GVK Power is also said to be amongst the forerunners in the bid.
A reliable company official said that since GVK has lost out to Lanco in the Griffin auction race, it was very keen to ``hold on to this prize catch''.
Reports indicated that last year, the Perth-based Wesfarmers considered adding Premier Coal to the Griffin Coal pitch, but certain circumstances had ensured that the company pulled out of the bidding process in September.
Wesfarmers executives were reportedly shocked at how much Lanco was willing to pay for Griffin. Now, with Lanco looking to build on its recent purchase, a new turf war may emerge between Indian suitors and some Chinese firms.
Although the world's second-largest economy is at a strategic inflection point in terms of its commitment to become more energy efficient and reduce the carbon intensity of its economy, coal will continue to play an important part, analysts said and market sources indicate that several Chinese firms have shown interest in the project
Though China's new five-year plan proposes to cap the country's energy use at 4 billion tonnes of coal equivalent a year by 2015 (up from 3.25 billion in 2010), companies are scouting Australian shores.
Wesfarmer officials have been quoted as saying that they fielded enquiries from both Chinese and Indian firms.
Interestingly, three Indian corporates have thrown their hats into the ring for the coal assets of one of Australia's largest thermal coal explorers, Bandanna Energy.
In a deal reportedly valued at $1.5 billion, GVK, state-owned consortium ICVL and Reliance Power are said to have bid for the assets. Analysts said that the Bandanna Energy is estimated to have reserves of over 1.3 billion tonnes of thermal coal.
Bandanna Energy had initiated an auction process to sell the assets and had mandated UBS to advise it. The last date for submission of bids is March 31, 2011. By then, it will be action stations. (sourced :mineweb)
Mar18, 2011
By Shivom Seth
MUMBAI - Following Lanco Infratech $830 million for Griffin Coal's adjacent mines last year, Premier coal mine, which supplies Western Australia's electricity network, is up for grabs.
In 2007, UBS valued Premier Coal at $500m. Officials at Lanco, who are also said to be eyeing Premier Coal, said that owning both the mines ``made perfect sense'' as the company could ensure efficiencies of scale.
The mine is located near Collie, 200 km south of Perth. India's GVK Power is also said to be amongst the forerunners in the bid.
A reliable company official said that since GVK has lost out to Lanco in the Griffin auction race, it was very keen to ``hold on to this prize catch''.
Reports indicated that last year, the Perth-based Wesfarmers considered adding Premier Coal to the Griffin Coal pitch, but certain circumstances had ensured that the company pulled out of the bidding process in September.
Wesfarmers executives were reportedly shocked at how much Lanco was willing to pay for Griffin. Now, with Lanco looking to build on its recent purchase, a new turf war may emerge between Indian suitors and some Chinese firms.
Although the world's second-largest economy is at a strategic inflection point in terms of its commitment to become more energy efficient and reduce the carbon intensity of its economy, coal will continue to play an important part, analysts said and market sources indicate that several Chinese firms have shown interest in the project
Though China's new five-year plan proposes to cap the country's energy use at 4 billion tonnes of coal equivalent a year by 2015 (up from 3.25 billion in 2010), companies are scouting Australian shores.
Wesfarmer officials have been quoted as saying that they fielded enquiries from both Chinese and Indian firms.
Interestingly, three Indian corporates have thrown their hats into the ring for the coal assets of one of Australia's largest thermal coal explorers, Bandanna Energy.
In a deal reportedly valued at $1.5 billion, GVK, state-owned consortium ICVL and Reliance Power are said to have bid for the assets. Analysts said that the Bandanna Energy is estimated to have reserves of over 1.3 billion tonnes of thermal coal.
Bandanna Energy had initiated an auction process to sell the assets and had mandated UBS to advise it. The last date for submission of bids is March 31, 2011. By then, it will be action stations. (sourced :mineweb)
Saturday, March 19, 2011
3 Indian cos in race to bid for Bandanna Energy's coal assets
Mar18, 2011,03.56AM IST,
By Vinu Lal & MV Ramsurya, ET Bureau
By Vinu Lal & MV Ramsurya, ET Bureau
BANGALORE/MUMBAI: Three top Indian companies have joined the race to bid for the coal assets of one of Australia's largest thermal coal explorers - Bandanna Energy - in a deal that could be valued at $1.5 billion. GVK, state-owned consortium ICVL and Reliance Power have shown early interest in bidding for the assets estimated to have reserves of over 1.3 billion tonnes of thermal coal, said people familiar with the development.
Bandanna Energy has initiated an auction process to sell the assets and has mandated UBS to advise it on the transaction. The last date for submission of bids is March 31, 2011.
An information memorandum circulated among bidders, a copy of which is with ET, indicate that the company has $750 million worth assets. A feasibility study on some of its coal assets completed last month, soon after which the sale process was kicked off.
Thermal coal is used by utility coal-fired power plants. Expanding capacities by companies in various industries have led to a rise in power consumption. While India is also rich in thermal coal deposits, high ash content in local coal and reduced production by Coal India, has prompted most user companies to scout global resource rich nations to tap for coal assets.
A GVK spokesperson did not reply to an email query sent by ET. Senior officials from GVK are currently in Australia. A Reliance Power spokesman denied the company is considering bidding for the coal assets. A senior ICVL executive said that the company was evaluating all options with respect to coal assets in Australia. "We have a board meeting scheduled on March 21 where we will take a call on all bids," he added. ICVL comprises of mining major NMDC, utility NTPC , steelmakers SAIL and Rashtriya Ispat Nigam , and Coal India.
Bandanna chairman Jeremy Barlow did not respond to an email query.
Bandanna would look at selling both minority or majority stake in its ongoing projects as well as explore the possibility of selling the entire entity as a whole. According to a person close to the bidder, current discussions initiated by the banker relate to a possible entity level sale rather than piecemeal project-level sale. "It is typical for a project as large as this to initially explore entity level interests than piecemeal selloffs," said the person.
Bandanna Energy has exploration licences for 16 blocks in the Bowen and Galilee Basins in Queensland. The company also has shale gas assets in the region. Six founder shareholders led by chairman Jeremy Barlow, own close to 70% stake in the listed Bandanna Energy.
Local demand for coal reported a compounded annual growth rate of over 8% during a five-year period till FY2010, to reach almost 600 million tonnes last year. The demand from the power sector, which accounts for over 70% of the country's overall coal demand, has been a major driving force, said a recent report by ICRA.
Bandanna Energy has initiated an auction process to sell the assets and has mandated UBS to advise it on the transaction. The last date for submission of bids is March 31, 2011.
An information memorandum circulated among bidders, a copy of which is with ET, indicate that the company has $750 million worth assets. A feasibility study on some of its coal assets completed last month, soon after which the sale process was kicked off.
Thermal coal is used by utility coal-fired power plants. Expanding capacities by companies in various industries have led to a rise in power consumption. While India is also rich in thermal coal deposits, high ash content in local coal and reduced production by Coal India, has prompted most user companies to scout global resource rich nations to tap for coal assets.
A GVK spokesperson did not reply to an email query sent by ET. Senior officials from GVK are currently in Australia. A Reliance Power spokesman denied the company is considering bidding for the coal assets. A senior ICVL executive said that the company was evaluating all options with respect to coal assets in Australia. "We have a board meeting scheduled on March 21 where we will take a call on all bids," he added. ICVL comprises of mining major NMDC, utility NTPC , steelmakers SAIL and Rashtriya Ispat Nigam , and Coal India.
Bandanna chairman Jeremy Barlow did not respond to an email query.
Bandanna would look at selling both minority or majority stake in its ongoing projects as well as explore the possibility of selling the entire entity as a whole. According to a person close to the bidder, current discussions initiated by the banker relate to a possible entity level sale rather than piecemeal project-level sale. "It is typical for a project as large as this to initially explore entity level interests than piecemeal selloffs," said the person.
Bandanna Energy has exploration licences for 16 blocks in the Bowen and Galilee Basins in Queensland. The company also has shale gas assets in the region. Six founder shareholders led by chairman Jeremy Barlow, own close to 70% stake in the listed Bandanna Energy.
Local demand for coal reported a compounded annual growth rate of over 8% during a five-year period till FY2010, to reach almost 600 million tonnes last year. The demand from the power sector, which accounts for over 70% of the country's overall coal demand, has been a major driving force, said a recent report by ICRA.
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