GMR buys Indonesian coal mine
GMR Group has acquired a 24,000-hectare coal mine at South Sumatra in Indonesia for $80 million, reports Samiran Saha.Updated: Mar 01, 2009, 20:25 IST
GMR Group has acquired a 24,000-hectare coal mine at South Sumatra in Indonesia for $80 million.
“The mine has been acquired to fuel our future projects as fuel is the most critical component for any power foray that we make in the coming years,” GMR Group chairman GM Rao said.
Coalmine prices have dropped sharply due to the slowdown. GMR was able to procure the mine at $80 million, while the mine was priced at $120 million when negotiations started.
“Of the 24,000 hectares, about 16 –17,000 hectares of the mine is unexplored and it will be able to provide fuel linkage for our power plants for the next 20-25 years,” Rao said.
Regarding how it plans to ship coal from its overseas mines Rao said, “We want the cheapest cost of landed coal and for this we are exploring various options including acquisition of a cargo ship.”
The group’s power plants on completion would be able to generate 4,500 mw.
Regarding its 1,000 mw Orissa power plant, Rao said “financial closure for the plant will be achieved very soon and we will start construction once the financial closure is in place.
GMR is also looking to invest in costal power plants in Maharashtra and Gujarat also, Rao said.