Thursday, May 29, 2008

Emco To Trade Indonesian Coal

Emco, primarily focused on the transmission and distribution segment of the power sector, plans to foray into the coal trading business and has tied up for coal supply from Indonesia, Chairman and Managing Director Rajesh Jain said today.

The company will source coal for its proposed trading business from the Indonesian coal mine company PT Bina Insan Sukses Mandiri, where it will acquire a 37.35% stake by virtue of Emco's arrangement with Singapore's Rabaan (S) Pte Ltd.

Emco, through a subsidiary, has picked up 37.35 per cent stake in Rabaan, which has a long-term exclusive coal offtake agreement with the Indonesian coal miner.

Emco’s core business has been in the business of manufacturing transformers, electric meters, and executing transmission and distribution projects. PT Bina Insan Sukses' mine is spread over 5,000 hectares and has an estimated coal reserve of 105 million tonnes. Emco expects to start getting coal from the mine in the next three to four months.

Source: Business Standard

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