Friday, February 11, 2011

India's Simhapuru targets S.African coal

CAPE TOWN: India's Simhapuri Energy , a unit of the Madhucon Group , wants to buy new or existing collieries in South Africa from where it aimed to export a minimum of 5 million tonnes within five years, an official said on Tuesday. 

Indian companies are buying coal assets in top five global exporter South Africa as it moves to secure resources for a growing economy and to feed coal into new power plants. 

"We want to invest in coal and are looking at some acquisitions. From South Africa we are targeting a minimum of five milion tonnes of coal for export within five years," Nama Krishnaiah, director of Simhapuri Energy, told Reuters on the sidelines of an African mining conference. 

Displacing Europe, India and China are emerging as the two main destinations for coal from South Africa, which last year shipped some 63 million tonnes of thermal coal. 

Maducon Group has interests in the construction, coal and sugar industries, with Madhucon Projects listed in Bombay. 

Krishnaiah said the company, which recently opened offices in Johannesburg, was in discussions with unnamed junior miners, as well as applying directly to the Department of Mineral Resources for mining licenses. 

"At this moment we are targeting some brownfield projects that have mining licenses, but we are looking at greenfield (developments) also," said Krishnaiah, adding that Zimbabwe's coal fields were also attractive. 

He said the company, which was developing a 1,920 megawatt power plant near India's Krishnapatnam port, was financially strong and had capital to purchase coals assets. 

The company already owns coal mines in Indonesia.

Source: India's Simhapuru targets S.African coal - The Economic Times

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