India’s Reliance Power Ltd. plans to invest $650 million to develop an Indonesian coal mine to ensure supplies as prices rise to a record, Bloomberg reported Tuesday.
The cost includes the mine, a railway and a jetty to ship coal from the South Sumatra province to a power station being built in southern India, CEO Jayarama Chalasani said.
The deposit may hold as much as 1.2 billion metric tons of coal, he said, equal to about 25% of Indonesia's known reserves.
The coal supplies from Indonesia will meet all of the 4,000-MW Krishnapatnam plant's needs when it starts in 2013, Chalasani said.
The company plans to use coal from the Indonesian mine to build an additional 4,000-megawatt project in Gujarat on the west coast or Tamil Nadu state in the south, he said.