ET reported that infrastructure company Lanco Infratech is in advanced talks with Indonesian engineering, procurement and construction services provider PT Truba Alam Manunggal to acquire its thermal coal mine in South Sumatra for USD 80 to USD 90 million.
A person with direct knowledge of the development said that “Lanco Infratech is in talks with not just one but multiple companies in Indonesia, South Africa and Australia. The company’s requirement of thermal coal is around 400 million tonnes now.”
The talks, if successful will give Lanco Infratech access to 140 million tonnes of coal reserves which will help meet its raw material requirement for a proposed coal-based power project in Karnataka. The acquisition will also help the Indian firm optimise the overall cost of producing power.
The deal between the two is being facilitated by Hindustan Global Resources, an Australian firm engaged in exploration, mining and consulting. The firm, owned by a group of non resident Indians, has also told Lanco Infratech that it would help the Indian company develop the mine once the deal is sealed.
In the past few years, power companies have become active in scouting for coal mines overseas due to the unavailability of good coal in India.
Mr Amar Bhasin vice president of Hindustan Global Resources said that “We have identified a few coal blocks in Indonesia and Australia that were up for sale and forwarded the proposal to Lanco. They are talking to the firms concerned. He however, declined to name the foreign mining entities.
