Tata Power sells mine in Indonesia for $500 mn.

Faced with losses from the Mundra power project, Tata Power said that it has sold its 30 per cent stake in one of its Indonesian coal mines for $500 million (Rs. 3,135 crore).

The company, which has acquired 30 per cent stake each in two coal mines that belong to Bumi Resources, signed an agreement with one of the entities of the Bakrie group, promoters of Bumi, to sell the stake. Tata Power will continue to hold its stake in Kaltim Prima Coal.

'The current coal price scenario has presented a challenge to the entire coal mining sector. The proceeds from the sale of Arutmin will provide cash to meet the company’s current challenges,' said Anil Sardana, managing director of Tata Power. The company also said that Arutmin is a mine that is spread over a number of pits in South Kalimantan in Indonesia. 'It had started posing production and cost viability challenges in its operations,' Tata Power said in a press release.

BS