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ShareMumbai: India Cements Ltd, the Tamil Nadu-based cement player, is acquiring a coal mine for $20 million or Rs100 crore in Indonesia.
The acquisition will be funded by equity through internal accruals, company officials said during a conference call while announcing the Q2FY10 results.
The company expects to import the first tranche of coal from this mine in the next six months. It plans to mine and import 40,000-50,000 tonnes a month initially, before ramp up operations next year.
Last quarter, India Cements imported 60% of its coal needs at $83 per tonne, while 40% was acquired in the domestic market from Singareni collieries.
India Cements' capex for this year is Rs 1,500 crore, of which it hasexpended Rs 530 crore. The company has gross debtof Rs 2,400 crore, of which Rs 150 crore will mature within a year.
