Indian firm JSW buys Indonesian coal mine rights

JSW Energy, the unlisted subsidiary of Indian steel firm JSW Steel, has acquired exploration and mining rights of a coal mine in Jambi, Indonesia, which has reserves of 300 million tonnes, India's Times News Network reported Saturday.

According to sources, JSW Energy has joined hands with a local company that owns the mining licence and has the option to take a significant equity stake in the firm. JSW Energy will invest in developing the mines and can use the coal from the mine for its projects in India.

JSW Energy CEO Raaj Kumar confirmed the development. ?With our power projects coming up in different parts of India, we want to be assured of fuel supply. The Indonesian foray will take care of our requirements,? he added. Kumar declined to give further details of the transaction.

The company is also in the process to conclude a similar transaction in Indonesia within a fortnight. ?The reserves will be of a similar size as in the first case,? said sources.(*)