Lanco Acquires Australian Coal Mine

8 March 2011 (Last Updated March 8th, 2011 18:30)

India's Lanco Infratech has agreed to acquire Griffin Coal of Australia for a A$730m (US$739m) to fuel its power projects in India. The assets of Griffin Coal include thermal coal mines with a production of more than four million tons. The firm will also build rail linkages

India's Lanco Infratech has agreed to acquire Griffin Coal of Australia for a A$730m (US$739m) to fuel its power projects in India.

The assets of Griffin Coal include thermal coal mines with a production of more than four million tons.

The firm will also build rail linkages and expand facilities at Bunbury port, which is 85km away from the mine.

Lanco CFO Suresh Kumar told the Economic Times that the acquisition would cover 30% of their overall coal requirement up to 2015.

Lanco has paid A$480m (US$485m) on 28 February this year funded by ICICI Bank, A$100m (US$101m) will be paid in 2013 while the remaining A$150m (US$151m) in 2015.