Bhubaneswar-based Indian Metals & Ferro Alloys Ltd said on Monday that it has acquired 70 per cent stake in an Indonesian coal mine for $8.75 million (Rs 38.8 crore). The stake was acquired through Indian Metals’ step-down subsidiary incorporated in Singapore.
The name of the target and other details were not disclosed by Indian Metals & Ferro Alloys. “It is not possible to quantify the total reserves at the moment as a detailed assessment is yet to be carried out along with a study of the infrastructure development required to sustain operations and the estimated investment in this regard,” said Indian Metals & Ferro Alloys in a stock exchange filing.
The company’s share price closed at Rs 473.95, up 1.84 per cent at BSE on Monday.
Indian Metals & Ferro Alloys, promoted by the family of Baijayant Panda (a Member of Parliament from the state of Orissa), is an integrated producer of ferro alloys with 157 MVA installed furnace capacity, a 108 MW coal-based captive power plant and extensive chrome ore mining tracts.
Indian Metals & Ferro Alloys reported 11.49 per cent increase in revenue for Q1FY12 at Rs 272.33 crore but net profit fell by over 30 per cent to Rs 37.42 crore.