| Date: |
03-06-2010 |
| Subject: |
NTPC to acquire Australian coal mine |
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NTPC plans to buy controlling interest in a 720mn tons coal field in Australia in a deal valued at US$1-1.5bn. The deal will help the company to increase about 3,500mw of power capacity.
The coal mines, located near Perth in western Australia, will allow NTPC to import up to 10mn tons of coal annually for its plants.
The debt-ridden promoters (of the Australian project) may sell the 416 mw power project along with its captive coal mine separately from the virgin coal field. NTPC is likely to participate only for the greenfield coal project that will give it access to 7-10mn tons of good-quality thermal coal. The annual production from the field could go over 12mn tons per annum.
The company (NTPC) will place its bid once the mode of selloff is decided by its current owners later this month. In case the entire project is sold as one unit, NTPC would acquire the power project as well. In this case, up to 3 million tonnes of coal from the greenfield project will used for the power plant. The existing captive mine of the power plant is depleting and will exhaust in 2-3 years.
Source :- indiainfoline.com
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