NTPC set to own Aussie coal mine

State-owned power producer NTPC will buy a controlling stake in an Australian coalfield for about $1.5 billion. A team of officials will be visiting Canberra to finalise the deal.

“We had talked to the Australian government. Our team is going there in 15 days. New South Wales and Queensland are the states we have zeroed in on. They have good port connectivity as well as black coal,” NTPC chairman and managing director R.S. Sharma said.NTPC will bring up to 10 million tonnes of coal annually from the mines for its plants in India.

Sharma, who recently went to Australia, said the company was keen to pick up equity stakes in coal blocks in that country. “We are more keen to pick up equity stakes in mines there (Australia). We want enough stake so that we can exercise some power.”Sources said the deal, if finalised, would be valued at about $1.5 billion. NTPC, however, declined to give the name of the firm with whom it was in talks.

According to the sources, NTPC is in talks with a power producer in Australia that is keen to sell its assets, including a small power unit, a captive coal mine and a large greenfield coal block.NTPC is scouting for coal properties abroad to meet its dry fuel requirement. “Right now our focus is on two areas — capacity addition and getting coal for our power plants,” Sharma said.

Besides Australia, NTPC is in advanced stages of discussion to pick up equity stakes in two coalfields in Indonesia and studying the prospects of acquiring interests in two coal blocks in Mozambique and one in South Africa.

NTPC requires about 130-150 million tonnes of coal annually for its power generation units. The company needs to import 20-25 million tonnes of coal per annum to meet the shortfall. The country’s coal imports were near zero five years back. They have been officially estimated at nearly 85 million tonnes in 2010-11, up from 70 million tonnes in the last fiscal.