Essel Mining to buy Indonesian coal mine: Report

Essel Mining & Industries, the unlisted unit of the Aditya Birla Group, is close to acquiring a mining company in Indonesia for USD 180 million in one of the biggest deals in the mining sector, reports Economic Times.

The company has the capacity to mine about 5 to 10 MT of coal a year, with the reserves estimated at over 400 MT.

Essel Mining had shortlisted several companies and is believed to have narrowed down the number. Other than catering to the Indian market, the acquisition will help Essel export coal to South Korea, Japan and Taiwan. The reserves will also be used for the group?s own plants in India.

Essel had initially conducted studies in South Africa, Australia and Indonesia for possible mining assets. The acquisition will be one of the biggest for the Indian mining sector where exploration in coal is still a prerogative of public sector companies. Essel Mining is one of the largest iron ore mining companies in the non-captive private sector with reserves of almost 200 MT. (*)