GMR Energy to Acquire Stake in Indonesian Mine

15 August 2011 (Last Updated August 15th, 2011 18:30)

GMR Energy has entered into a definitive agreement to acquire a 30% stake in Indonesia's Golden Energy Mines (GEMS) for $450m to $550m. As part of the deal, GMR Energy will purchase coal for a period of 25 years, with the annual offtake quantity increasing to 10Mt in the coming years.

GMR Energy has entered into a definitive agreement to acquire a 30% stake in Indonesia's Golden Energy Mines (GEMS) for $450m to $550m.

As part of the deal, GMR Energy will purchase coal for a period of 25 years, with the annual offtake quantity increasing to 10Mt in the coming years.

GEMS has coal reserves and coal resources of about 860Mt and 1.9 billion tons respectively, GMR said.

GMR Energy business chairman BVN Rao said that the acquisition will provide the firm with fuel security for its power plants, which are under construction, and will also support further capacity addition and trading.