The $3.5 billion RPG Group has increased its holding in Australian coal mining company Resource Generation Limited (RG) by picking up another 4.8% stake for $10.75 million (Rs 48.5 crore). The stake will be picked up by Bantal Singapore Pte Limited, a wholly-owned subsidiary of RPG Group’s flagship power company CESC.
RPG Group’s Integrated Coal Mining Limited (ICML) had initially purchased a stake for Rs 45 crore in the Australian Stock Exchange listed firm in September 2010.
Resource Generation, which is developing one of South Africa’s largest remaining coal deposits, also signed a deal with RPG Group’s Integrated Coal Mining Limited to extend purchase of thermal coal from Boikarabelo mine to 139 million tonnes from 37 million tonnes. The purchase deal is spread over 38 years, up from 20 years in the original contract signed last September.
CESC is also starting a feasibility study for construction of a 2x660MW coal-fired power station adjacent to the Boikarabelo mine to supply power to the South African grid, as per a statement by Resource Generation.
CESC has an installed generating capacity of 1,225 MW which it plans to increase to 5,745 MW.