India's NTPC eyeing SAfrican coal mining co-report
MUMBAI, Sept 15 |
MUMBAI, Sept 15 (Reuters) - India's largest power producer, state-run NTPC Ltd (NTPC.BO), is looking to spend up to $1 billion to acquire a South African coal mining firm, the Mint newspaper reported on Tuesday.
"The South African firm has the exploration license for one billion tonnes of coal reserves. Once NTPC acquires the firm, it will also get the license to mine the coal," the paper quoted an unidentified person familiar with development as saying.
The name of the South African firm was not disclosed.
"With NTPC having huge cash reserves, it is in an advantageous position for a deal this size," the person told the paper.
NTPC, which aims to import 12.5 million tonnes of coal this year, has cash reserves of 443.9 billion rupees ($9.1 billion), the paper said.
A spokeswoman for NTPC reached by Reuters declined to comment on the report.
Last month a junior power minister told parliament three of NTPC's 15 power plants were facing acute coal shortage at that time. [ID:nDEL360360] ($1=48.6 rupees) (Reporting by Janaki Krishnan; Editing by Ranjit Gangadharan)
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