Tata Power acquires 26% stake in BSSR
Friday, November 9 2012 - 01:15 AM WIB
Tata Power, India's largest integrated power company, said that it has acquired 26 percent stake in Indonesia-listed mining firm PT Baramulti Suksessarana Tbk (BSSR) through its 100 percent subsidiary Khopoli Investments Limited (Khopoli).
PT Antang Gunung Meratus (AGM), a 100 percent subsidiary of the BSSR, and BSSR together own approximately 1 billion tons of coal resources in South and East Kalimantan, Tata said in a statement issued on Thursday.
Earlier, Tata had signed a long term coal supply agreement with AGM. "We recognize fuel security is key to support Tata Power's growth agenda. Thus, besides entering into coal off-take agreement, we have acquired 26 percent stake in this coal mine too as its reserves and outlook is very promising. This acquisition would aim to support our power generation projects in select geographies, to be developed over next few years,? said Anil Sardana, Managing Director of Tata Power.
Tata Power's existing Indonesia presence includes 30 percent equity stake in PT Kaltim Prima Coal and PT Arutmin Indonesia. As part of the purchase, Tata Power has signed an Offtake Agreement which entitles it to purchase about 10 million tons of coal per annum. Additionally, a consortium comprising of Tata Power, Origin Energy and PT Supraco is developing a geothermal project in Indonesia with approximately 240 MW of generation capacity.
Editing by Reiner Simanjuntak