Tata Power acquires 26% stake in Indonesian mining firm
New Delhi: Tata Power Thursday said that it has acquired 26 percent stake in PT Baramulti Suksessarana mine in Indonesia.
"The company has acquired these mines through its 100 percent subsidiary Khopoli Investments Limited," Tata Power said in a statement.
It is now a 26 percent shareholder in PT Baramulti Suksessarana (BSSR) PT Antang Gunung Meratus, a 100 percent subsidiary of BSSR and BSSR together own approximately 1 billion tonnes of coal resources in South and East Kalimantan in Indonesia.
Earlier, the Company had signed a long-term coal supply agreement with PT Antang Gunung Meratus a 100 percent subsidiary of the Indonesian company PT Baramulti Sukses Sarana.
Speaking on the development, Tata Power Managing Director Anil Sardana said,
"We recognise 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," he said.
Tata Power's existing Indonesia presence includes 30 percent equity stake in PT Kaltim Prima Coal (KPC) and PT Arutmin Indonesia(AI). As part of the purchase, Tata Power has signed an Offtake Agreement which entitles it to purchase about 10 million tonnes of coal per annum, the statement said.
Additionally, a consortium comprising Tata Power, Origin Energy and PT Supraco is developing a geothermal project in Indonesia with approximately 240 MW of generation capacity.
Tata Power has an installed generation capacity of 6,899 MW in India and a presence in all the segments of the power sector viz Generation (thermal, hydro, solar and wind), Transmission, Distribution and Trading.