India?s Monnet finalizes Sumatra coal mines acquisition

Monnet Global Limited, the subsidiary of Indian steel maker Monnet Ispat & Energy Ltd (MIEL), is conducting due diligence to acquire coal mines in Bengkulu and Jambi provinces.

?We are in final legal due diligence in Bengkulu and Jambi,? the official from Monnet told Petromindo.com last week. The company is expected to be completed the due diligence in the next three month, the official said.

The company hopes to get about 70 million reserves of coal for each mine. The calorific value from the mine around 5,300-5,500 kcal/kg (ADB).

?Once we acquired the mines, we expect to produce around 500,000-1 million tonnes of coal per year in initial production,? the official said.

Monnet is still looking possibility for another coal mines in Indonesia, the official added.

According to Monnet's website, Monnet Group is an industrial conglomerate born out of a conviction. It is this strength of conviction that makes us the second largest coal-based Sponge Iron manufacturer with thriving facilities in Raipur and Raigarh in the State of Chattisgarh.

At the present, Monnet has a combined capacity of 860,000 TPA of Sponge Iron, 300,000 TPA of Steel, 60,000 TPA of Ferro Alloys and Power generation facility of 150MW besides running the largest underground coal mine in the country.(denny)