Indonesian Political, Business & Finance News

Reliance Power to buy coal mines

| Source: GOI
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.
Tags: business
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