Won't sell stake in Indonesian coal mines: Tata Power

Tata Power today set to rest speculation that it was trying to sell its stake in two Indonesian coal mines owned by PT Bumi Resources.
    
"We strongly deny the rumours regarding our stakes in Indonesian Coal mines - KPC and Arutmin," Tata Power said in a statement here.
    
Tata Power Company holds 30 per cent stake in PT Kaltim Prima Coal and PT Arutmin Indonesia, owned by Jakarta-based PT Bumi Resources Tbk.
    
"This acquisition is a key part of the Company's growth strategy and we have no intention to sell our stake in the coal mines to Bumi Resources or any other party," India's largest private sector power utility said.
    
In March 2007, the Ratan Tata group company had agreed to shell out Rs 4,840 crore ($1.1 billion) for a 30 per cent stake in two coal mines owned by the Indonesian firm.
    
As per the agreement, Tata Power gets to buy 10 million metric tonnes of coal from the said coal mines in order to secure coal supplies for its growth plans.
    
The company has chalked out aggressive growth plans for adding 10,000 MW of power generation capacity in the next five years, company Chairman Ratan Tata had said in September 2008.
    
PT Bumi Resources is said to be the third largest coal producer in Asia and one of the fastest growing coal companies in the world.