Sajjan Jindal-led JSW Energy is close to acquiring a sub-Saharan African thermal coal mine, which has reserves of more than 200 million tonnes, to minimise dependence on other overseas companies, said a person with direct knowledge of the development.
Although the person did not reveal the deal size, an expert tracking the sector said it could be anywhere between Rs 350-500 crore depending on the quality of coal and how far the mine is from the port. Thermal coal is a key input in power generation.
The acquisition, if successful, would be funded through a mix of internal accruals and debt, the person added. Coal from the mine would be shipped to India for captive use in the company’s three upcoming power plants. JSW Energy, part of the JSW Group, has interests in power generation, transmission, distribution and trading.
Although the person did not reveal the deal size, an expert tracking the sector said it could be anywhere between Rs 350-500 crore depending on the quality of coal and how far the mine is from the port. Thermal coal is a key input in power generation.
The acquisition, if successful, would be funded through a mix of internal accruals and debt, the person added. Coal from the mine would be shipped to India for captive use in the company’s three upcoming power plants. JSW Energy, part of the JSW Group, has interests in power generation, transmission, distribution and trading.
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