08 November 2012

Tata Power acquires 26 percent stake in large mines at PT Baramulti Suksessarana Tbk, Indonesia

Mumbai / Delhi – 08 November 2012 - Tata Power, India's largest integrated power company, today announced that it has acquired 26 percent stake in PT Baramulti Suksessarana Tbk (BSSR), Indonesia through its 100 percent subsidiary Khopoli Investments Limited (Khopoli), and is now a 26 percent shareholder in BSSR. PT Antang Gunung Meratus (AGM), a 100 percent subsidiary of the BSSR, and BSSR together own approximately 1 billion tonnes of coal resources in south and east Kalimantan in Indonesia. BSSR has listed its shares at the Indonesian Stock Exchange, with stock exchange ticker: BSSR. 

Earlier, the company had signed a long term coal supply agreement with AGM. 

Speaking on the development, Anil Sardana, managing director, Tata Power, said, "We recognise fuel security is key to support Tata Power’s growth agenda. Thus, besides entering into coal off-take agreement, we have acquired 26 percent stake in this coal mine too as its reserves and outlook is very promising. This acquisition would aim to support our power generation projects in select geographies, to be developed over next few years.” 

Tata Power’s existing Indonesia presence includes 30 percent equity stake in PT Kaltim Prima Coal and PT Arutmin Indonesia. As part of the purchase, Tata Power has signed an off-take agreement which entitles it to purchase about 10 million tonnes of coal per annum. Additionally, a consortium comprising of Tata Power, Origin Energy and PT Supraco is developing a geothermal project in Indonesia with approximately 240 MW of generation capacity.

Source: Tata Group