Monnet Ispat buys Indonesian coal firm

Monnet Global (MGL), a wholly owned subsidiary of Monnet Ispat and Energy, has acquired a 100 million tonne Indonesian coal company, PT Sarwa Sembada Karya  Bumi at $24 million, the company said in a release.

“The acquisition gives MGL access to one of the largest thermal coal mine spreading over an area of 25,000 hectares. Presently, only 1,500 of the 25,000 hectares have been explored and the company has been able to establish 65 million tonne of coal reserves in the mines and expects these reserves to go up substantially after completing exploration of the whole area,” the company said in a release.

Monnet Group's power projects are bunched under its subsidiary, Monnet Power Company.

The subsidiary is currently setting up a 1050 MW power plant in Angul and has captive coal mines to feed the plant. The plant is expected to be operational by the third quarter of 2012.

Also, the company is setting up additional 2,000 MW power projects by June 2014. Out of the 2,000 MW, two super critical power projects with the rated capacity of 2 x 660 MW i.e equal to 1,320 MW will be coming up and will be fed by imported coal.