India Cements is set to acquire a coal mine in Indonesia for around $20 million (around Rs 100 crore). The company is taking the mine on a develop, operate and market model.
Speaking to reporters after announcing the results here on Wednesday, vice chair and managing director N Srinivasan said the company would sign the agreement in two weeks. The mine would be for captive purpose.
Initially, it would produce 40,000-50,000 tonne a month and this would be ramped up to 100,000 tonne after one year. The company’s present requirement is around 800,000 tonne of coal per annum for cement alone. This is likely to go up by another 400,000 lakh in two-three years when its greenfield plant in Rajasthan and other expansion plans are complete. The company imports around 600,000 tonne of coal every year, he said.
Speaking about the power business, Srinivasan said the company had identified ThyssenKrupp as an EPC (engineering, procurement and construction) partner for the two projects coming up in Tamil Nadu and Andhra Pradesh. The first project is expected to go on stream by March 2011 and second by September 2011. The two projects, with a capacity of 50 mega watt each, involve a cost of around Rs 500 crore.