Saturday, May 14, 2022

Tata Power subsidiary secures 10-year coal mining business permit in Indonesia

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  • These are strategic assets to Tata Power which also help in hedging imported coal price exposure for its generating assets, said the company
  • The special business mining permit is granted for an initial period of 10 years and will be valid until December 31, 2031

New Delhi: Tata Power subsidiary PT Kaltim Prima Coal (KPC) has secured a 10-year Special Mining Business Permit in Indonesia for coal. In a statement released on Wednesday, Tata Power said, “PT Kaltim Prima Coal (KPC) has been granted a Special Mining Business Permit (IUPK) by the Investment Minister / Head of the Indonesia Investment Coordinating Board Decree of the Investment Minister / Head of The Investment Coordinating Board, Indonesia. KPC is based out of Indonesia and is held 30 percent by Tata Power through its wholly-owned subsidiary Bhira Investments Pte Ltd.”

“These are strategic assets to Tata Power which also help in hedging imported coal price exposure for its generating assets. The renewal will also help to ensure a regular supply of coal for its thermal power plants,” said Tata Power.

‘Mining permit will ensure coal supply for Tata Power thermal plants’

Speaking on the renewal of the mining business permit, Dr Praveer Sinha, CEO & MD, Tata Power said, “We are thankful to the Indonesian government for trusting PT KPC through the renewal of our special mining business permit for coal. This will ensure a robust coal supply chain for our imported coal-based thermal plants resulting in the generation of reliable power to meet India’s energy demands.”

The special business mining permit is granted for an initial period of 10 years and will be valid until December 31, 2031. The validity can be extended by the provisions of the applicable regulations. “This extension confers certainty of the mining operations and supply of coal,” said Tata Power.

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