A person privy to the company’s plan stated that “Lanco Infratech is in talks with not just one but multiple companies in Indonesia, South Africa and Australia. The company’s requirement of thermal coal is around 400 million tonnes now.”
Thermal coal, a sector where the company has interest, is used as a raw material for power production. If the talks are successful, the acquisition would provide Lanco with access to 140 million tonnes of coal reserves, that would reach the required raw material for a planned coal-fired power plant in Karnataka.
The deal has been facilitated by an Australian firm, Hindustan Global Resources, owned by a group of non-resident Indians, which is engaged in the exploration, mining and consulting.
