GMR Infra buys Indonesian coal mining Co

Bangalore: GMR Infrastructure confirmed the acquisition of an Indonesian coal mining company for a consideration of $80 million.

The company had been negotiating with PT Barasentosa Lestari (PT BSL) for sometime for a good price and succeeded in striking the deal for $20 million less than earlier reported valuation of $100 million for the 100 per cent acquisition of the company.

The company will be paying 50 per cent of the cost $ 40 million now and the remaining amount on commissioning of the mining operations, expected in two years, said a company official.

PT BSL holds a mining licence for two separate coal blocks in South Sumatra from the Indonesian Government for a period of 30 years. The mines are estimate to have reserves of 100 million tonnes.

GMR Infra, which bought the company through its subsidiary, GMR Energy Ltd, plans to fund the acquisition through a mix of debt and equity. The acquisition of PT BSL is part of GMR Infra’s strategy to own coal assets to scale up its business in the power sector. The company is implementing its first thermal power unit in Orissa with a rated capacity of 1050 MW. It has got a coal supply linkage for the project.