GMR to start mining coal in Indonesia next month

NEW DELHI: GMR Energy would start mining activity at its coal mine in Indonesia from next month, according to a source.

"The company would start extracting coal from one of the two separate blocks in South Sumatra, Indonesia next month," he said.

In 2009, GMR Energy acquired 100 per cent ownership of PT Barasentosa Lestari (PTBSL), a coal mining company in Indonesia for about USD 100 million.

PT BSL is holding a legal coal mining licence under the Coal Contract of Work issued by the government of Indonesia. The licence provides 25 year mining authorisation over two separate coal blocks in South Sumatra, Indonesia.

The company bought the coal mine with the purpose of securing fuel supplies for its thermal power projects in India.

These acquisitions will also help in circumventing the volatility of fuel prices for its imported coal based coastal power plants in India.

Meanwhile, the company has acquired a 33.5 per cent stake in Homeland Energy Group Ltd (HEG) which owns coal properties in South Africa through its subsidiary the Homeland Mining and Energy (HMESA).

HEG owns a controlling interest in the already operational Kendal mines, fully explored Eloff mines and other exploration sites with total mineable reserves of around 300 million tonnes.

GMR Energy has acquired 100 per cent ownership interest in EMCO Energy Ltd, (a subsidiary of EMCO Ltd), a Public Limited Company.

EMCO Energy is developing a 600 MW coal based power plant, in two phases (of 300 MW capacity each), in Warora, Maharashtra.

GMR Energy is operating a 200 MW coal-based project at Chennai in Tamil Nadu and is also constructing 1,050 MW thermal project at Dhenkanal in Orissa, which would be operational next year.