The South African coal assets, Eloff mine and Kendall mine, were sold through its subsidiary Homeland Mining and Energy (HMESA) to multiple buyers, reported The Economic Times.
GMR that owns a majority stake in Homeland group has stated that HMESA has offloaded 50% stake in Tshedza Mining Resource to its equal venture partner Mbuyelo Group. Tshedza holds mining license to Eloff mine.
Meanwhile, Joe Singh Group has acquired 100% stake in Kendall mine.
A source familiar with the developments told The Economic Times that the sale is on lines with GMR’s asset light and right strategy, wherein they sold the coal mines to local miners.
"Both mines were expected to be operational by now with a total production of around 4 million tonne annually, but they are yet to take off," the source added.
The company has recently sold 70% stake in GMR Energy Singapore to FPM Power for SGD660m ($482.6m).
GMR currently has debt of INR370bn ($6.79bn), which it aims to narrow down by INR100bn ($1.8bn) through assets sale.
"Around $25 million will be used to pay back a loan to ICICI. Homeland does not have any operating assets now," the source noted.
