GMR eyeing coal mines acquisition in Australia, Indonesia

Indian firm GMR Infrastructure said it has bid for two coal assets in Australia and Indonesia, aiming to secure raw material needs for its upcoming power projects, Indian media reported Tuesday .

Group CFO A Subba Rao did not give detail.

Sources said GMR Group is among the shortlised bidders for Bandanna Energy's coal mines in Australia and is competing with other Indian entities like Aditya Birla Group, JSW Steel , JSPL along with some Chinese and Korean companies.

The company would soon begin the due-diligence of the asset and value of the bid could be anywhere beyond USD 1 billion, sources added. Rao, however, declined to comment.

Brisbane-based Bandanna Energy has 16 exploration permits for coal in the Bowen and Galilee Basins in Queensland and has commenced a strategic review late last year to develop three projects in Bowen basin.

Rao said Indonesian mine ?is a large asset, having a reserve in excess of 500 million tonnes". GMR is looking at a minority stake here.

Industry sources said the asset is located in Kalimantan province of Indonesia but the reserve size and company name could not be immediately verified.

The GMR Group already has operations in Indonesia, from where it is planning to begin the production this year.

"We will begin with two million tonnes production initially. Ramping up the production will depend on whether we require coal here for our operations," he said.

In 2009, GMR Energy had acquired Indonesian coal company PT Barasentosa Lestari for USD 80 million and has reserves of 100 million tonnes.(*)