JSPL Sells Off Botswana Coal Mine

Image Source: business-standard.com

Business Standard reported that Jindal Steel & Power Limited has sold off its Botswana coal mine to Maatla Energy for USD 150 million. Business Standard quoted a company spokesperson as saying “The Company has entered into a share purchase agreement to divest its stake in the Botswana project for a consideration of around $150 million. Since the transaction is progressing at this time, the Company would not like to further comment on it, till the transaction consummates. Any proceeds from this divestment will be used to pare down debt.”

Botswana coal mine, which was bought by Jindal Africa, a subsidiary of JSPL, for USD 116 million in 2012 as part of its global expansion, was one of the key international ventures of JSPL. In 2012 the company increased its portfolio of projects through the acquisition of Canadian listed company, CIC Energy Corp for approximately USD 116 million. The company later also undertook a number of studies and successfully obtained a mining license on its 2.7 billion tonnes coal resources.

Source : Business Standard