GMR takes 5 per cent in South African coal mine
17 Apr 2008
Mumbai: GMR Energy Limited, a wholly-owned subsidiary of Bangalore-based GMR Infrastructure, has acquired a 5-per cent stake in mining firm Homeland Mining & Energy in South Africa, a subsidiary of Homeland Energy Group of Canada.
GMR Infrastructure, which is into development of airports, power projects and roads, said it has an option to acquire an additional 45 per cent in the South African firm. The company, however, did not disclose financial details of the deal.
GMR Energy currently has three operating non-coal power plants in India generating 800 MW of power.
It is in the process of executing two 1,000 MW coal-fired power plants in Orissa and Chattishagarh respectively. GMR Energy is also tying up four more projects across India.
Homeland Mining holds licence for several coal mining projects in South Africa, a statement from GMR Infrastructure said.
"This acquisition would ensure fuel security for GMR Group's power projects in India and such a transaction also acts as a catalyst in the development of the energy business of the Group," the statement added.