GVK talks with MEC for Indonesian mines deal

GVK Power and Infrastructure on Wednesday said it is in talks with Gulf-based MEC Coal to buy its coal mines in Indonesia, though it would be a while before a deal can be inked.

“We are talking to them (MEC). The valuations are still to be worked out. But our talking to them does not mean we will close the deal. It all depends on valuations and pricing. We can’t set a timeframe for the talks yet,” Isaac George, GVK’s CFO said.
MEC Coal, a joint venture between MEC (Mineral. Energy. Commodities) and the Emirati government of Ras Al Khaima, is developing significantly large coal mines in Asia.

When asked about talk of a deal valuation in the range of $700 million to $1 billion, he said: “I don’t know where these numbers are coming from. We are yet to reach that stage of putting a number to it.”

GVK has been scouting for coal mines for sometime now. However, it is still not known whether the infrastructure company would operate the mines on its own or use the coal for its power projects.

The company is also said to be among as many as 16 companies in the race to pick up stake in Australia-based Griffin Coal Mining.
GVK currently operates three power plants with a total capacity of about 900 mw and is in the process of developing two power plants of 540 mw each.

While the existing capacities are based on gas, the new capacities are coal-based.