You are here: Home » Companies » News
Business Standard

Lanco willing to divest majority stake in Griffin Coal

Says it is having discussions with two Australia-based merchant bankers for getting a strategic partner

Press Trust of India  |  Hyderabad 

Lanco Group, which owns Griffin Coal Mines in Australia, expects to achieve financial closure for its expansion programme by July 2013 and is also prepared to divest majority stake in the mines, a top official of the infra major said.

Lanco Chairman L Madhusudhan Rao said the total investment that is needed for expansion of Griffin mines would be around $1.2 billion.

This includes increasing mining capacity, strengthening the rail line and building a jetty at port.

"For Griffin coal expansion, we have plans to achieve financial closure by July 2013. We are looking at some sort of a strategic partner also to join. To that extent, we have ten months time," Rao told reporters yesterday on the sidelines of the company’s Annual General Meeting.

"We are not looking at (holding) majority stake. We will look at a shareholders agreement where our position is in control like our Kondapalli power project, where we have 36% stake and shareholder agreement gave us control," Rao added.

Lanco Infratech through ts Australian subsidiary, Lanco Resources Australia, acquired Griffin Coal Mining Company and Carpenter Mine Management for AUD 730 million in March 2011.

He said they are in discussions with two Australia-based merchant bankers for getting a strategic partner.

Explaining the expansion plans Rao said, of the total $1.2 billion investment, 50% will go into mines expansion and the rest will be spent on rail line improvement and port.

"Port upgradation should be about $500 million. $100 million will be for Rail upgradation and balance will be spent on mines side," Rao said.

Last year Griffin produced a little over 3 million tonne of coal. This year, it is expected to produce about 3.7 million tonne of the mineral.

While 3 million tonne is sold in Australia, 7.5 lakh tonnes will be exported.

Replying to query, he said case filed by Perdaman may be have an outcome by May next year.

Australia’s Perdaman Industries, last year, filed an AUD 3.5 billion lawsuit against Lanco in Australia, alleging non compliance with coal supply pact for the company's upcoming urea plant in Western Australia.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Fri, September 28 2012. 16:42 IST
RECOMMENDED FOR YOU
.