India’s Monnet Global, the overseas subsidiary of steel maker Monnet Ispat & Energy Ltd (MIEL), is set to acquire mining rights for a 250-million ton coal reserve from PT Anzawara, India's The Economic Times reported Tuesday.
The deal would enable the company to start coal trading and look for lucrative markets in China, Southeast Asia and India. Monnet has interests in steel and power sectors.
"We have reached an understanding with PT Anzawara to sign a 25-year agreement to exploit coal resources of the Indonesian company for sales both in local and overseas markets," MIEL executive vice-chairman & managing director Sandeep Jajodia said.
"The agreement would be initially for only one fourth of the total reserve (about 80 million ton), before reserves of remaining mining areas is assessed and exploited," he said.
He said that the deal would involve a royalty payment to the original mining lease holders.
It is expected that the mine would yield a production of 1 million tons by July this year. This would progressively increase to 3 million tons in the next couple of years.