Tata Power subsidiary granted Indonesia coal mining lease for 10 years
The lease is granted for an initial period of ten years until December 31, 2031, and can be extended in accordance with the provisions of the applicable regulations, according to a statement from the company.
KPC is based in Indonesia, and Tata Power owns 30% of it through its wholly owned subsidiary Bhira Investments Pte Ltd.
“The Investment Minister / Head of the Indonesia Investment Coordinating Board Decree of the Investment Minister / Head of The Investment Coordinating Board, Indonesia has granted PT Kaltim Prima Coal (KPC) a Special Mining Business Permit (IUPK),” Tata Power said in a statement.
The lease is granted for a period of ten years, ending December 31, 2031, and can be extended in accordance with the provisions of the applicable regulations. This extension ensures the continuity of mining operations and the supply of coal.
According to the company, these are strategic assets for Tata Power that also aid in hedging imported coal price exposure for its generating assets. The renewal will also help to ensure a consistent supply of coal for its thermal power plants, according to the company.
In response to the renewal of the mining business permit, Tata Power CEO and MD Praveer Sinha stated, “We are grateful to the Indonesian government for renewing PT KPC’s special mining business permit for coal. This will ensure a reliable coal supply chain for our imported coal-based thermal plants, resulting in reliable power generation to meet India’s energy demands.”
Apart from KPC, Tata Power has a 26% stake in the Indonesian mines of PT Baramulti Suksessarana Tbk through its subsidiaries. It has also agreed to sell a 30% stake in PT Arutmin Indonesia and related coal trading and infrastructure companies.
Tata Power shares closed 1.12% higher on the BSE on Wednesday, at Rs 229.50 apiece.