(EnergyAsia, November 14 2012, Tuesday) — India’s Tata Power Company and Japan’s Idemitsu Kosan Co have acquired stakes in an Indonesian coal miner in separate deals
Tata Power bought a 26% stake in Jakarta-listed PT Baramulti Sukses Sarana Tbk (BSSR) for an undisclosed sum while Idemitsu Kosan said it paid more than one billion yen for a 3% stake.
India’s largest private power company said the acquisition would improve its security of coal supply as BSSR and its subsidiary PT Antang Gunung Meratus (AGM) hold a combined one billion tonne of coal reserves in Kalimantan province.
In July, Tata Power signed a long-term agreement to import coal from AGM.
“We recognise fuel security as a key to support Tata Power’s growth agenda. Thus, besides entering into coal off-take pact, we have acquired 26% stake in this coal mine as its reserves and outlook are very promising,” said Tata Power’s managing director, Anil Sardana.
The latest acquisition adds to Tata Power’s 30% stake in two other Indonesian miners, PT Kaltim Prima Coal and PT Arutmin.
Separately, Idemitsu Kosan said it bought into BSS to access the miner’s low-calorie sub-bituminous coal reserves and its growing exports to Vietnam, China, India and Japan.
According to Idemitsu, the miner expects to raise the annual production from its Antang Gunung Meratus mine from around three million tonnes to seven million tonnes by end-2014.