Wednesday, 24 Aug 2011
GMR Infrastructure which already has coal mines in Indonesia and South Africa, recently added another Indonesian mine to its portfolio.
Last week, the company agreed to acquire 30% in PT Golden Energy Mines. The new mine comes with an offtake agreement giving it additional security for its projects that already have linkages and supplies in place. Back home, however, the company does not have any imported coal based power project at present.
The latest acquisition comes at a time when its earlier coal acquisitions are coming of age. The company’s fully owned Greenfield PT Barasentosa Lestari in Indonesia, is all set to start commencing production next month. The coal will be sold in the local market.
Mr A Subba Rao CFO of GMR Infra said that “If Coal India decreases production, we will use the extra coal to power our coal-based plants. If the supply to our projects is on track, we will use the extra coal for trading.”
Mr Rao said that “Initially, a few lakh tonnes of coal will be produced, but production will be ramped up to a million tonnes a year. The reserves there are huge, at around 110 million tones.” He claimed they are ready to increase production to three million tonnes, should necessity arise.
(sourced BS)
GMR Infrastructure which already has coal mines in Indonesia and South Africa, recently added another Indonesian mine to its portfolio.
Last week, the company agreed to acquire 30% in PT Golden Energy Mines. The new mine comes with an offtake agreement giving it additional security for its projects that already have linkages and supplies in place. Back home, however, the company does not have any imported coal based power project at present.
The latest acquisition comes at a time when its earlier coal acquisitions are coming of age. The company’s fully owned Greenfield PT Barasentosa Lestari in Indonesia, is all set to start commencing production next month. The coal will be sold in the local market.
Mr A Subba Rao CFO of GMR Infra said that “If Coal India decreases production, we will use the extra coal to power our coal-based plants. If the supply to our projects is on track, we will use the extra coal for trading.”
Mr Rao said that “Initially, a few lakh tonnes of coal will be produced, but production will be ramped up to a million tonnes a year. The reserves there are huge, at around 110 million tones.” He claimed they are ready to increase production to three million tonnes, should necessity arise.
(sourced BS)
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