India’s NLC seeks to acquire coal assets overseas to feed power plants at home
KOLKATA (miningweekly.com) - India’s Neyveli Lignite Corporation (NLC) has lined up capital expenditure (capex) of about $4.7-billion to expand power generation capacity, and acquire high-grade coal assets overseas, as linked feedstock for the power plants.
About 30% of the capex would be funded through the company's internal accruals while the balance would be raised through bank debt, a company official said.
The coal asset acquisition abroad would be through joint ventures (JVs) with partners overseas. Negotiations were currently under way with miners in Australia, Indonesia and Mozambique, the official said.
However, no details on the identity of the overseas miners or the quantum of investments involved were disclosed by the company.
NLC would focus on overseas acquisition for coal assets which were of high calorific value to feed its power projects, since its own domestic production of lignite was of low grades and not suitable to achieve optimal efficiencies from the power plants, the official said.
The coal miner cum power generator planned to increase it thermal power generation capacity fourfold to 11 200 MW by 2020, of which new capacity creation of 1 500 MW would be completed by the end of current fiscal period, and at least 30% of the total feedstock requirement would be from overseas coal assets to be acquired by NLC.
At home, NLC had set a target to increase lignite mining production to 39-million tonnes a year over the next five years from the current level of 28-million tonnes a year.
Last year, the company had floated an expression of interest seeking JVs with overseas coal asset owners and long-term agreements for coal supplies, in response to which it has received 89 proposals.
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