Indian Metals and Ferro Alloys (IMFA), one of the largest integrated producers of ferro alloys in the country, has acquired 70% stake in a coal mine in Indonesia. The acquisition was done through Indmet Mining Pte Limited, a step-down subsidiary incorporated in Singapore specifically for the purpose. It is the first foreign acquisition made by the Orissa-based company promoted by the family of Rajya Sabha MP, Baijayant 'Jay' Panda.
"We have taken up 70% stake in the property through a step-down subsidiary based in Singapore. The total cost of buying the stake will be $8.75 million. We will develop the mine, including the necessary infrastructure to make it operational," Prem Khandelwal, chief financial officer and company secretary of IMFA group told ET from Bhubaneswar.
The mine is located in the Central Kalimantan region of Indonesia. The remaining 30% stake in the project is held by Indonesian businessmen who also hold the crucial licenses or "IUPs" in local parlance.
The acquisition also marks the IMFA group's initial foray into coal trading abroad. "We hope to get the necessary government approvals within a year. Once the mines are developed, the coal extracted will be used to take up merchant sales in and around Indonesia ," a top IMFA group executive said. The coal belongs to thermal grade with a calorific value of 6,000 kilo calories. While the group is planning to have the requisite infrastructure linkages in place within a year, the partners will have to pump in funds to set up a road link to evacuate the coal.
"The quantum of reserves in the coal mine is difficult to ascertain since a detailed assessment is yet to be done. Currently, drilling operations are on at the site. We will be able to get an idea of the amount of reserves after it is complete," Khandelwal said. Depending on a study on the infrastructure required to be set up in the area, the group will be in a position to finalise the investment required for maintaining sustained operations. Source: Economic Times
"We have taken up 70% stake in the property through a step-down subsidiary based in Singapore. The total cost of buying the stake will be $8.75 million. We will develop the mine, including the necessary infrastructure to make it operational," Prem Khandelwal, chief financial officer and company secretary of IMFA group told ET from Bhubaneswar.
The mine is located in the Central Kalimantan region of Indonesia. The remaining 30% stake in the project is held by Indonesian businessmen who also hold the crucial licenses or "IUPs" in local parlance.
The acquisition also marks the IMFA group's initial foray into coal trading abroad. "We hope to get the necessary government approvals within a year. Once the mines are developed, the coal extracted will be used to take up merchant sales in and around Indonesia ," a top IMFA group executive said. The coal belongs to thermal grade with a calorific value of 6,000 kilo calories. While the group is planning to have the requisite infrastructure linkages in place within a year, the partners will have to pump in funds to set up a road link to evacuate the coal.
"The quantum of reserves in the coal mine is difficult to ascertain since a detailed assessment is yet to be done. Currently, drilling operations are on at the site. We will be able to get an idea of the amount of reserves after it is complete," Khandelwal said. Depending on a study on the infrastructure required to be set up in the area, the group will be in a position to finalise the investment required for maintaining sustained operations. Source: Economic Times
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