Reliance Power acquires S. Sumatra coal mines

Anil Dhirubhai Ambani Group firm Reliance Power on Friday announced the acquisition of three coal mines in Indonesia through its subsidiary Reliance Coal Resources Pvt Ltd (RCRPL), Indian media reported on Friday.

A Reliance Power release said, ?RCRPL has entered into a definitive agreement to acquire 100% economic interest in three coal concessions in Indonesia.? The mines are Sriwijaya Bintangtiga Energy, Bryayan Bintangtiga Energy and Sugico Pendragon Energy in the South Sumatra with spread over an area of 40,000 hectares.

RCRPL plans to invest around $ 1billion (Rs 4,100 crore) in mine and related transportation infrastructure to take the capacity of these mines to over 25 million metric tonne per annum. The mines have total reserves worth two billion metric tonne.

According to the agreement, RCRPL will not make down payments for the mines, but the contractors of the mines would be paid on a per-tonne basis.

Coal from the mines would be supplied to Reliance Power?s 4,000-MW ultra mega power project at Krishnapatnam in Andhra Pradesh and also to the 2,800 MW Shahapur power project in Maharashtra. As per the agreement, payment for the acquisition will be linked to the actual production of coal. (*)