Lanco finalises Australia's Griffin coal purchase
India's Lanco Infratech has finalized its acquisition of Australia's Griffin Coal assets for A$750 million ($760 million), in what it said was the largest investment in Australia by an Indian company.
"We are focussed on growing the Griffin coal business, and further developing the mining and infrastructure (rail and port) facilities in the region," Lanco Chairman L. Madhusudan Rao said on Friday.
Previous estimates has put the value of the deal at $800 million to $850 million.
Western Australia-based Griffin Coal's assets included thermal coal mines with a production of more than 4 million tonnes per annum, which Lanco plans to boost almost four-fold to over 15 million tonnes per annum, in addition to adding rail linkages, and expanding facilities at Bunbury port.
The coal from the thermal coal mines will feed Lanco's rapidly expanding power plants-- the company plans to expand to 9,500 MW by 2014 from 2,100 MW at present, and is developing eight new projects, with a combined capacity of about 10,500 MW. The assets had attracted bidders like Reliance Power, Adani Power and GMR from India, apart from interested parties from Australia and China.
The company has said it will seek more acquisitions in Australia, Africa and Indonesia.