GVK to divest coal mines stake

GVKgroup, of which GVK Power & Infra is a part, is in talks with Indonesia'sPT Kideco Jaya Agung for divesting part of its stake in the coal mines that itbought last week from Australia's Hancock Group for $1.26 billion. On September17, GVK agreed to pay $1.26 billion for a majority stake in three Australiancoal mines and a port and rail project owned by Hancock Group to securelong-term coal supplies for the Indian group's power projects. Along with acquiringminority stakes, Kideco is asking for an MDO [mine development operatorship]. GVK will need the financial support and technicalexpertise of partners to develop the mines, and the rail and port projects,with the overall investment required in the first phase pegged at $10 billion. Thegroup is in talks with many people and it will finalise the names in some time.