Punj Lloyd buys 50 per cent in Indonesian coal mining firm

11 Apr 2011

Infrastructure major Punj Lloyd has acquired a 50 per cent stake in a thermal coalmine company in Indonesia through its Singapore-based subsidiary Sembawang Engineers and Constructors.

Sembawang Development Pte Ltd has signed an agreement to acquire a 50 per cent stake in a thermal coalmine company in Central Kalimantan, Indonesia, Punj Lloyd said in filing with the Bombay Stock Exchange (BSE).

The mining company holds a coal IUP licence and is located in Barito Utara district of Central Kalimantan. The concession has currently estimated resources of 134 million tones and potential reserves calculated at 57 million tonnes, Punj Llloyd said.

However, it did not disclose the name of the Indonesian company and the deal size.

With an expected shortfall in domestic coal production, Indian companies are looking for coal ventures overseas, in Indonesia, Africa, Australia and the Americas.

Indonesian ambassador Lt-General Andi M Ghalib has actively encouraged investments and deals between the two countries.