Transcript Acquisition and Development of Overseas Coal Blocks : An Overview

Acquisition and Development of
Overseas Coal Blocks : An Overview
R.K. Saha, CMD, CCL/President MGMI
DEMAND – SUPPLY GAP
(In million tonnes)
Terminal Year ( 11-12)
Item
08-09
Act.
09-10
Act
10-11
(Prov)
Original
MTA
Latest
Assessment
Coal Demand
550.00
597.98
731.0
713.24
696.03*
Demand Materialisation/Supply
490.02
514.50
656.31
(BE)
523.24
680.0
629.91
559.0#
Demand-Supply Gap
Coal Import
Overall Gap
59.98
59.00
0.98
83.48
67.74
15.74
133.07
92.0
41.07
51.0
51.0
-
83.33
83.33
-
137.03
173.03
-
* _ Assessed by Planning Commission #_ considering 5MT stock liquidation from CIL sources
• IMPORT DEPENDENCE
• INVESTMENT OPTIONS OUTSIDE INDIA
• CHALLENGES IN ACQUISITION OF
COAL BLOCKS ABROAD
- High Valuation
- Improper Research before acquisition
- Port Access
- Policy considerations
THE SHOPPING CHART OF INDIAN COMPANIES : A GLIMPSE
Company
Mines
Usage for
Adani Power
(i)
Bunyu Mines in Indonesia,
(produces – 6mtpa)
(ii)
Linc Energy’s Galilee
Tenement coal assets, &
Abbot point coal terminal
Queensland, Australia
Mundra-4620 MW,
Dahej, Tiroda, Kawai,
Chindwara &
Bhadreshwar
Future plants
(Plan – 50 mtpa)
Company
Mines
JSW Energy
(i)
(ii)
Reliance Power
Long term contract with
Sungai Belati Indonesia
and
SCMH in South Africa
3 Indonesian Mines
(i)
Srivijaya Bintangtiga
Energy,
(ii) Bryayan Bintangtiga
Energy &
(iii) Sugico Pendragon Energy
in the South Sumatra area.
To invest in mine & related
transportation
Infrastructure.
Usage for
Ratnagiri 1200 MW &
860 MW Vijay Nagar.
4000 MW UMPP
Krishnapatnam &
2800 MW
Shahpur TPP
(Plan – 25 mtpa)
Company
Mines
Tata Power
30% stake in BUMI
Resources’
PT Kaltim Prima Coal
(KPC) and
PT Arutmin Mines,
Indonesia
4000 MW Mundra UMPP
79% stake in (i) Alpha Coal
Project, and associated
port & rail projects at Abbot
Point (Terminal 3)
Queensland, Australia
(Plan – 20mtpa)
To secure long term fuel
supplies with GCV of
about 5800- 6000
kcal/kg, Low ash, low
Sulphur coal.
(i)
(ii)
GVK Power
Usage for
Company
Mines
Usage for
Lanco Infratech
(i) Griffin Coal Co., Australia
To ensure fuel security
Essar Group
(i)
Trinity coal, USA
(Plan – 10 mtpa)
To supply Essar’s
U.S steel operation
Monnet Ispat
& Energy Ltd.
(i)
PT Sarwa Sembada Karya
Bumi, Indonesia
Low shipping cost, less
Transit time to India
Coal India Ltd
Two coal blocks in Mozambique