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

PMO favours joint mining by NTPC, RPower in Jharkhand

THE prime minister’s office has recommended that NTPC and Reliance Power should jointly mine adjacent coal blocks in Jharkhand to help them extract about 200 million tonnes of additional coal that would have been lost if the mines were delineated and drilled independently, government and company officials said. The proposal also has the backing of Parliament’s standing committee on coal. 

NTPC chairman and managing director Arup Roy Choudhury told ET that the company has found merit in the proposal. “It is a good proposal. But we have to examine it closely since we would start production much ahead of them. These evaluations would take some time,” he said. 

As per statutory norms, companies owning different blocks are required to maintain a “safety angle” between the blocks, reducing the amount of coal they can extract. 

A Reliance Power spokesperson confirmed the development and said: “This is the optimum way to mine coal for promoting coal conservation. We look forward to discussing with NTPC on how to co-ordinate mining operations.” 

Reliance Power had sought government’s approval for joint exploration of coal mines attached with Tilaiya ultra mega power project and NTPC’s Kerandari Aand Pakri Barwadih blocks. Tilaiya blocks – Kerandari B and Kerandari C – lie in between NTPC’s Kerandari A and Pakri Barwadih blocks. 

“The proposal has been recommended by PMO and the standing committee on coal. We have written to the power ministry seeking directions to NTPC for the same. The two companies should now be working toward a strategy to extract coal blocked in barriers and batters in their respective coalfields. They will have to get the strategy approved by the government,” a coal ministry official said.

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