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Friday, 30 October 09
TATA POWER MAY BUY COAL FROM RIVERSDALE'S MOZAMBIQUE MINES


Bloomberg reported that, Tata Power Ltd., India’s biggest electricity generator outside state control, may buy coal from a mine in Mozambique being developed by Australia’s Riversdale Mining Ltd.

“Tata Power is one of the many interested Indian off- takers for our thermal product,” Riversdale Managing Director Steve Mallyon said in a statement e-mailed through the company’s external public-relations agency. “There is also growing interest from a number of Indian cement producers because of the product’s energy content.”

Tata Power, which said yesterday net profit fell 28 percent, is looking for new sources of fuel as Indian utilities plan to double generation capacity in the next seven years. The company paid $1.3 billion in March 2007 to buy stakes in two Indonesian coal mines owned by PT Bumi Resources.

The Indonesian stake agreement entitled Tata Power to purchase 10 million metric tons of coal, securing supplies of the fuel for its Indian power plants. Tata Power has an installed capacity of 2,785 megawatts, according to its Web site, and the utility is building a 4,000-megawatt power plant at Mundra in western India.

Riversdale and Tata Steel Ltd., India’s biggest producer of the metal, approved development of a $270 million coal mine in Mozambique with first production scheduled for next year.

Production in the first stage of the Benga project will be an estimated 1.7 million metric tons of coking coal and 300,000 tons of thermal coal for export, Sydney-based Riversdale said in a statement to the Australian stock exchange on Oct. 28.

The venture is considering a second-stage expansion by 2014 to boost output to 3.3 million tons of coking coal, used in steelmaking, and 2 million tons of thermal coal, used by power stations, Riversdale said in the statement. Tata Steel owns 15 percent of Riversdale.
Source:Bloomberg



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Thursday, 19 November 09
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