Aditya Birla group may bid for Indonesia coal firm stake

Aditya Birla group may bid for Indonesia coal firm stake
Published: 05 January 2012

Aditya Birla group is considering a bid for a 10 to 15 per cent stake in Indonesian coal miner Bumi Resources Tbk PT to secure coal supplies for its expanding cement and aluminium operations, the Economic Times reported on Thursday.

The transaction, along with an off-take agreement, could be worth over INR10bn, the paper said.

"I wouldn’t say we have made up our mind, but to have a share in one of the largest coal companies would be an attractive option," the paper quoted an unnamed group official as saying.

The group has said to have shown interest in bidding for several overseas coal assets recently, including for Australian coal miner New Hope Corp.

India holds 10 per cent of the world’s coal reserves, but supplies have fallen short of rising demand from power plants as well as steel and cement companies because of environmental and land acquisition delays, forcing expensive imports.

Source: Reuters