Aditya Birla group may bid for Indonesia coal firm stake - report
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Aditya Birla group is considering a bid for a 10 to 15 percent stake in Indonesian coal miner Bumi Resources Tbk PT to secure coal supplies for its expanding cement and aluminium operations, the Economic Times reported on Thursday.
The transaction, along with an offtake agreement, could be worth over 10 billion rupees, the paper said.
"I wouldn't say we have made up our mind, but to have a share in one of the largest coal companies would be an attractive option," the paper quoted an unnamed group official as saying.
The telecoms-to-cement conglomerate requires thermal coal for group companies Hindalco Industries, India's top aluminium producer, and UltraTech Cement, the country's largest cement producer.
The group has said to have shown interest in bidding for several overseas coal assets recently, including for Australian coal miner New Hope Corp.
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India holds 10 percent of the world's coal reserves, but supplies have fallen short of rising demand from power plants as well as steel and cement companies because of environmental and land acquisition delays, forcing expensive imports.
Indian power utility Tata Power holds 30 percent stake in two coal mines owned by Bumi Resources, which it had acquired for $1.3 billion.
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A spokesman for Bumi Resources could not be immediately reached for comment. A sokeswoman for the Aditya Birla group said the group does not respond to speculation.
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