JSW Energy in talks to buy African coal mine for $70 mn

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, according to sources. The deal could be anywhere between $70-100 million (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.

Coal from the mine would be shipped to India for captive use in the company’s three upcoming power plants. Currently, the company has access to limited thermal coal reserves in India and is largely dependant on imports. Besides making full-fledged acquisitions, the firm is also in talks with the local African government for jointly developing thermal coal mines. JSW Energy is in the process of installing three power plants, one each in Karnataka (600 mw), Rajasthan (1,080 mw) and Maharashtra (1,200 mw). The company has already commissioned 300 mw in Karnataka.