Monnet Ispat is close to acquiring a coal mine in Sumatra, Indonesia. The company would complete the acquisition of the coal mine by this week and will announce the news of acquisition early next week.
Monnet Ispat will utilize the coal from the Indonesian mine for its merchant power plant of about 2000 MW. The company is already setting up a 1050 MW plant in Orissa for which the coal will be sourced from its domestic mines. It has ventured into merchant power business through its subsidiary – Monnet Power.
As there is mismatch in demand supply of coal due to which there is short supply of coal and prices rises sharply, power and steel companies are scouting for coal assets abroad. To keep control on their coal costs in future the company has been looking for a coal mine from a long time.
Last month, Monnet Ispat and Energy’s subsidiary --Monnet Power Company -- was aiming to invest around Rs 3,300 crore for increasing power generation capacity of its plant being built at Angul in Orissa. The company is engaged in the business of sponge iron, steel ingot and billets and coal mining.
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