Anil Ambani controlled Reliance Power Ltd has acquired three coal mines in Indonesia to meet fuel requirements for its power projects in India. The company is yet to announce the deal size, but according to industry officials, it would be around Rs 7,520 crore ($1.6 billion).
Reliance Power’s wholly-owned subsidiary, Reliance Coal Resources Ltd, has entered into share purchase agreements with Indonesia’s Sugico groups to acquire the entire share capital of two of its coal firms — PT Srivijaya Bintangtiga Energi and PT Brayayan Bintangtiga Energi.
“These two Indonesian companies own three coal mines in Indonesia. The coal from these mines will be used in the Krishnapatnam ultra-mega power project and other power projects of the group,” Reliance Power said in a statement to the BSE on Thursday.
The three mines have a combined reserve of 200 crore tonnes and is expected to meet Reliance Power’s coal requirement for 25 years. A company spokesperson declined to share more details.
The company is believed to have made an upfront payment of Rs 500 crore and the balance would be paid in a staggered manner linked to the production from these mines, said an official.