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KC Thapar group, the largest domestic coal logistics company, is close to acquiring some “large” sized coal mines in Indonesia and is expecting to seal the deal within a year, said a top company official.
“It is in Indonesia... We are looking at coal mines with slightly larger reserves, so that it can be slightly long-term investment,” KC Thapar & Brothers (Coal Sales) Executive Director, Mr Varun Thapar, told PTI.
He added, “Hopefully, within a year we will be able to finish it. The conversations are at a slightly advanced stage, so until we sign on the dotted lines, I don't think we can tell you more.”
KCT Coal Sales' Vice-Chairman and Joint Managing Director, Mr Vikram Thapar, said, “We are looking at something like 100 million tonnes of reserves, it may not be necessarily one mine”.
According to Mr Vikram Thapar, the deal will be a privately owned venture and his company has also roped in two other local partners for the buy-out.
“Having an Indonesian partner brings a lot to the table. You need feet on the ground there,” Mr Vikram Thapar said, but refused to comment further.
KCT Coal Sales is primarily engaged in coal and bulk logistics, having a net worth of about Rs 1,000 crore and handles about 70 million tonnes of coal movement within the country to various consuming industries related to power, steel, cement among others.
Explaining about the company's foray into coal mining, Mr Vikram Thapar said that “all the domestic power producers are now scouting for fuel sources and are dependent on imported coal. So even if they buy coal mines abroad, they will buy from other sources as well. You don't put all your eggs in one basket.”
“Let's say we are looking at 100 million tonnes of reserves that can last for 20 years. This is a long-term solution one needs. That's why getting into this business makes sense for us,” he said.
Indonesia has emerged as one of the favoured destinations for Indian companies that are scouting for coal mines abroad.
Recently, the Monnet Group had announced acquisition of a 100-million-tonne Indonesian coal company, PT Sarwa Sembada Karya Bumi at $24 million and reports suggest it is close to buying another mine there.
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