CX Partners-backed sponge iron maker Monnet Ispat & Energy Ltd has acquired Indonesian coal company PT Sarwa Sembada Karya Bumi for $24 million or around Rs 108 crore. The deal gives Monnet
The acquired firm has operations in the Jambi province of Sumatra region in the South East Asian country, that has become one of the most targeted ground for Indian firms specially steel producers and power generation firms to secure their natural resource requirements.
Sandeep Jajodia, executive vice chairman & managing director of Monnet Ispat & Energy said due to the location of the coal mine it would be cost effective to ship the coal back to India to feed the group’s coastal power projects.
“We plan to mine more coal than required for our captive needs, for selling in the open market which will be a long term source of revenue, as there seems to be good potential for the reserves to go up substantially,” he said.
Jajodia added that the Indian firm managed to acquire the asset at a low value as the deal was struck in 2008, but the final agreement took time to execute due to various regulatory processes.
Last April, the new
The group had also raised capital from Blackstone for its power arm. Blackstone had invested Rs 275 crore (approximately $60 million) for 12.5% equity stake in Monnet Power Company Limited, an independent power producer that is developing a 1,050 MW coal fired power plant in Orissa backed by pit-head captive coal mines