November 21, 2008

TATA Power eying more coal mines overseas

BS reported that TATA Power is evaluating opportunities to make another overseas acquisition of a coal mine and is planning to zero in on smaller mines. The report cited Mr Prasad Menon MD of TATA Power as saying that "We are evaluating various opportunities."

As per report, TATA Power is considering fresh acquisitions to minimize the risk from the supply of 2 million tonnes of coal from Indonesia based mines for its ultra mega power project at Mundra, whichbecome operational in 2012.

The report added that TATA Power will adopt a judicious approach while making the mine acquisition given the current surge in coal prices and the rise in valuation of coal mines.

TATA Power is implementing the 4,000 MW UMMP at Mundra through a special purpose vehicle Coastal Gujarat Power. It requires about 5 million tonnes of coal annually for the project. In April 2007, TATA Power had acquired 30% stake in two coal mines in Indonesia based PT Kaltim Prima Coal and PT Arutmin Indonesia. It will receive 3 million tonnes of coal a year from the Indonesian mines.