Monday, April 2, 2007

Tata Power to acquire 30% stake in Indonesian coal firm Bumi resources for $1.3 bn

Tata Power will pay $1.3 bn to buy stakes in Indonesian PT Bumi Resources Tbk's two coal mines. Tata Power will acquire 30% stakes in Bumi's PT Kaltim Prima Coal and PT Arutmin Indonesia, two of Indonesia's largest coal mines, and a related trading company. The two coal mines produced 53.5 mn tonnes of coal per year in 2006.

Tata Power will also buy 10 mn tonnes of coal from Kaltim Prima Coal for two proposed power projects with a capacity to generate a total of 7000 MW. The plants will be built on the west coast of India over the next five years.

Tata Power generates 2300 MW of power in the country and has been eyeing coal reserves in Australia, Indonesia and South Africa to tie up supplies for its proposed 15,000 MW-capacity expansion plan. Tata Power needs about 21 mn tonnes of imported coal. The company expects that 50% of the demand will be addressed through this deal.

Tata Power has three months to complete the transaction.

Read more in The Economic Times article.
Related Post:
REL, Tata Power looking at Indonesian coal company Bumi
Tata Power to bid $1.6 bn for Indonesian coal mine Bumi Resources

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