India?s Monnet to get S. Kalimantan mining concession

Monnet Global, the subsidiary of Indian steel maker Monnet Ispat & Energy Ltd (MIEL), is set to acquire a mining concession with a deposit of 250 million tons in Indonesia from PT Anzawara Satria.

?We have reached an understanding with PT Anzawara to sign a 25-year agreement to exploit coal resources of the Indonesian company for sales both in local and overseas markets.

The agreement would be initially for only one fourth of the total reserve (about 80 million tons), before reserves of remaining mining area is assessed and exploited,? Monnet Ispat & Energy Ltd executive vice-chairman & managing director Sandeep Jajodia told the Economic Times of India.

He said that the deal would involve a royalty payment to the original mining lease holders. It is expected that the mine would yield a production of 1 MT by July this year. This would progressively increase to 3 MT in next couple of years.

While the company would trade this coal initially, it is also looking at the option of setting up a coastal power plant based on the imported Indonesian thermal coal from its mines.

Anzawara has coal concession in Satui, South Kalimantan. (*)