RPower may invest $5 bn to develop Indonesian coal mines
Anil Ambani group firm Reliance Power is looking to invest about USD 5 billion for developing coal mines in Indonesia to feed its mega power projects, among others, in India.
Reliance Power's Chief Executive J P Chalsani on Tuesday met Indonesia's Vice President Boediono in Jakarta to discuss investment in the southern part of Sumatra island, said Boediono's spokesman Yopie Hidayat.
"The company plans to build a 230 Km long railway that will link its coal production base in Batang Hari to a port, which it will also build," Hidayat was quoted by Bloomberg in a report today.
The report said the company may invest USD 5 billion for developing the mines.
Reliance Power plans to develop three coal mines in South Sumatra from where it targets to produce as much as 50 million tonnes of coal per annum, he added.
However, the company's spokesperson declined to comment on the development.
The company had informed the Bombay Stock Exchange on June 10 this year that it will buy two Indonesian coal companies through Reliance Coal Resources.
"Reliance Coal Resources Ltd has entered into share purchase agreements with two Indonesian coal firms that own three coal mines there," Reliance Power had said
The company has not disclosed the financial details of the transaction.
According to the statement, the coal from Indonesia will be used for the Krishnapatnam Ultra Mega Power Projects and other power projects of Reliance Power.
Krishnapatnam UMPP is a 4,000-MW supercritical coal-fired power generation facility.
