Tata Power Acquires 26% Stake in Large Mines at Baramulti Suksessarana
OREANDA-NEWS. November 13, 2012. Tata Power, India's largest integrated power company, today announced that it has acquired 26% stake in PT Baramulti Suksessarana Tbk ("BSSR"), Indonesia through its 100% subsidiary Khopoli Investments Limited ("Khopoli"), and is now a 26% shareholder in BSSR. PT Antang Gunung Meratus ("AGM"), a 100% subsidiary of the BSSR, and BSSR together own approximately 1 billion tonnes of coal resources in South and East Kalimantan in Indonesia. BSSR has listed its shares at the Indonesian Stock Exchange with stock exchange ticker:BSSR.
Earlier, the Company had signed a long term coal supply agreement with PT Antang Gunung Meratus ("AGM"), a 100% subsidiary of the Indonesian company PT Baramulti Sukses Sarana ("BSSR").
Speaking on the development, Mr. Anil Sardana, Managing Director, Tata Power said "We recognize fuel security is key to support Tata Power's growth agenda. Thus, besides entering into coal off-take agreement, we have acquired 26% stake in this coal mine too as its reserves and outlook is very promising. This acquisition would aim to support our power generation projects in select geographies, to be developed over next few years."
Tata Power's existing Indonesia presence includes 30% equity stake in PT Kaltim Prima Coal (KPC) and PT Arutmin Indonesia(AI). As part of the Purchase, Tata Power has signed an Offtake Agreement which entitles it to purchase about 10 million tonnes of coal per annum. Additionally, a consortium comprising of Tata Power, Origin Energy and PT Supraco is developing a geothermal project in Indonesia with approximately 240 MW of generation capacity.
Tata Power is India's largest integrated power company with a significant international presence. The Company has an installed generation capacity of 6899 MW in India and a presence in all the segments of the power sector viz Generation (thermal, hydro, solar and wind), Transmission, Distribution and Trading. It has successful public-private partnerships in Generation, Transmission and Distribution in India namely "Tata Power Delhi Distribution Limited" with Delhi Vidyut Board for distribution in North Delhi, 'Powerlinks Transmission Ltd.' with Power Grid Corporation of India Ltd. for evacuation of Power from Tala hydro plant in Bhutan to Delhi and 'Maithon Power Ltd.' with Damodar Valley Corporation for a 1050 MW Mega Power Project at Jharkhand. It is one of the largest renewable energy players in India and is developing country's first 4000 MW Ultra Mega Power Project at Mundra (Gujarat) based on super-critical technology. Its international presence includes strategic investments in Indonesia through 30% stake in coal mines and a geothermal project; in Singapore through Trust Energy Resources to securitise coal supply and the shipping of coal for its thermal power generation operations; in South Africa through a joint venture called ‘Cennergi' to develop projects in South Africa, Botswana and Namibia; in Australia through investments in enhanced geothermal and clean coal technologies and in Bhutan through a hydro project in partnership with The Royal Government of Bhutan. With its track record of technology leadership, project execution excellence, world class safety processes, customer care and driving green initiatives, Tata Power is poised for a multi-fold growth and committed to 'lighting up lives' for generations to come.
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