Lanco, Truba in coal mine acquisition talks: Report
Monday, August 24 2009 - 02:29 AM WIB
Indian Infrastructure company Lanco Infratech is in advanced talks with IDX-listed contractor PT Truba Alam Manunggal to acquire the latter?s thermal coal mine in South Sumatra for US$80-90 million, The Economic Times reported on Monday quoting a source.
The Lanco Infratech spokesman declined to comment on the development.
The talks, if successful, will give Lanco Infratech access to 140 million tonnes of coal reserves, which will help meet its raw material requirement for a proposed coal-based power project in Karnataka. The acquisition will also help the Indian firm optimise the overall cost of producing power.
The deal between the two is being facilitated by Hindustan Global Resources, an Australian firm engaged in exploration, mining and consulting. The firm, owned by a group of non-resident Indians, has also told Lanco Infratech that it would help the Indian company develop the mine once the deal is sealed.(*)