Iron ore miner NMDC is looking forward to buy Indonesian Coal mine of Shree Renuka Sugars. The company has almost done with its primary investigations and due diligence.
NMDC, a state-controlled mineral producer of the country, has completed due diligence for Indonesian thermal Coal mine owned by Shree Renuka Sugars. The company plans to buy this mine mainly for trading purpose.
In the news, the senior official of NMDC stated, “Due diligence is almost complete; the report is likely to come by the end of April.”
He further added that after evaluation of due diligence report, the officials of NMDC will visit the mine for first-hand assessment in Jambi province of Sumatra. As per the feedback, the company will take decision on acquisition.
A Shree Renuka Group company Shree Renuka Energy owns the mine through PT Renuka Coalindo Tbk, a listed subsidiary.
In 2008, the company had acquired the concession for Jambi Prima Coal mine that spread over 1,000 hectares and in April, 2010 it started its production. It is one of the largest Coal mines in the Jambi region with resources of 120 MnT, as per the information. At present scenario, it is producing 1 MnT pa Coal, which is expected to boost up to 5 MnT pa by FY17.
After proposed of 500 MW power plant in Uttar Pradesh that will be on stream after 3 years, the company may use Coal from the mine. NMDC has been allocated thermal Coal mines to feed these plants.
Based on SteelMint’s research, India imports more than 180 MnT Coal and in view of widening demand; imports will rise and touch new heights.