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| Haldia Coke to raise Rs 125 crore |
| TE Narasimhan / Chennai Dec 21, 2009, 00:02 IST |
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Haldia Coke and Chemicals Ltd, a group company of Chennai-based Ennore Coke, is planning to raise Rs 125 crore through private equity for acquisition and expansion of its facilities, a senior company official said.
“Logistics due diligence is on for acquiring a 90 per cent stake in Australian mining firm Broughton at an estimated cost of around $15 million (around Rs 72 crore),” said the official. The company expects to complete the deal by mid-June 2010.
Broughton has reserves of 30 million tonnes of coking coal, he said, adding the proposed acquisition would help the company determine the cost among others.
The mine would supply one million tonne of coal, though the requirement of Haldia Coke is 720,000 tonnes. The company imports 300,000 tonnes of coal from the US and 400,000 from Australia. “Post acquisition, we don’t have to rely on third parties,” said the official.
On its expansion plans, he said, the company would double the capacity at its Haldia and Orissa plants to 260,000 and 160,000 tonnes respectively. It is also planning to increase the power generation capacity at the Haldia plant to 24 Mega watt from 12 Mw while it would set up an 8 Mw power plant in Orissa. “Land has been allotted by the Haldia administration and the expansion would start next year,” he added.
The money would be raised through Haldia Coke. The company is yet to decide on the dilution part.
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