GMR sees S. Sumatra coal mine to start production in 2011

Indian firm GMR Group said its South Sumatra coal concession will be ready for production in the next two years.

CFO A. Subbarao was quoted by Business Standard of India as saying that coal from the mine will fuel its proposed 2,000-MW power plant which will be built in the east coast of India.

?The Indonesian coal firm, which we acquired, will be ready for coal extraction in two years and we want to be ready with a project to utilize the raw material,? Subbarao said without revealing the planned production volume.

The company?s unit GMR Infrastructure had acquired in February 2009 100% ownership interest of PT Barasentosa Lestari (BSL), a holder of a coal-mining license under the Coal Contract of Work issued by the Government of Indonesia. The license provides 30-year mining authorization over 2 separate coal blocks in South Sumatra.(*)