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Tata Power unit eyes Indonesia, S.Africa coal resources

Tata Power unit eyes Indonesia, S.Africa coal resources
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First Published: Tue, Jun 01 2010. 04 13 PM IST
Updated: Tue, Jun 01 2010. 04 13 PM IST
Nusa Dua, Indonesia: India’s largest private sector utility, Tata Power Co Ltd, is looking for coal suppliers in Indonesia and South Africa, a senior official said on Tuesday.
Project head J.K Niyogi identified Mozambique, Botswana, South Africa, Australia, Russia, and Mongolia as the coal boom countries of the future.
“In Indonesia, we are in touch with various producers but it takes time (to do) due diligence process,” he said when asked whether Tata Power planned any mine acquisitions or off-take agreements in Southeast Asia’s biggest economy.
Speaking at the Coaltrans conference in Bali, he said Tata Power forecasts coal imports to surge to 22 million tonnes a year by 2014, from 5 million in 2009.
He said India’s coal imports would grow 14% annually from 45 million tonnes in 2009 to 72 million in 2011, but did not say if he was referring to the calendar or financial year.
Tata said in March its trading unit was looking to help arrange coal supplies from Australia, Indonesia and Africa for small power producers amid an increasing scarcity of the resource in India.
Tata Power also said it will increase its coal imports from Indonesia’s Bumi Resources to as much as 10 million tonnes by 2013, from less than 3 million tonnes currently.
The Indian firm signed an agreement in 2007 to acquire a 30% stake in Bumi’s units, PT Kaltim Prima Coal (KPC), and PT Arutmin Indonesia.
As part of the deal, Tata Power entered into a long-term coal off-take agreement with KPC for the supply of about 10 million tonnes a year. But Niyogi said that Tata currently gets less than 3 million tonnes.
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First Published: Tue, Jun 01 2010. 04 13 PM IST