India's NTPC eyes two Indonesian coal mines

Indian firm NTPC Ltd., may buy stakes in two coal mines in Indonesia as it seeks access to the fuel to help end blackouts in India, The Jakarta Post reported Tuesday.

The utility is studying two mines in Sumatra and East Kalimantan, which may together have as much as 1.8 billion metric tons of coal re?sources, chairman and managing director R.S. Sharma told reporters in New Delhi on Monday. The purchase may be completed by March 2011, he said, declining to name the mines.

NTPC would seek a majority stake in the mines, Sharma said, declining to name the current owner. The mine in East Kalimantan may have coal resources of about 1 billion tons and the one in Sumatra about 800 million tons.

The purchase has been delayed because the coal has high moisture content and NTPC is studying ways to improve the fuel?s quality, includ?ing mixing it with dry coal to en?hance the potential to generate heat, Sharma said.

?It is destination coal for us now,? Sharma said Monday. ?We are working all out for that.? (*)