Surana, Agate ink JV for coal exploration in Indonesia

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Chennai, Jan 9 (UNI) Steel maker Surana Industries Limited (SIL)today signed a Memorandum of Understanding (MoU) with the Malaysian-based Agate Group for setting up a joint venture for coal exploitation in Indonesia which will ensure assured supply of coal for SIL's integrated steel plant at Raichur.

Surana Industries would be picking up 49 per cent stake in the Joint Venture -- P T Agate Resources-- having a total capital of 20.4 million US Dollar, Surana Industries Chairman G R Surana told newspersons here today.

"The JV company will be entitled to sell 100 per cent of the coal produced. A minimum of 49 per cent of the coal would be given to our company at the permissible price," Mr Surana said.

"The price of the coal to be sold to us will be determined by the pricing formula announced by the government and according to local regulations in India.

"The coal will come to Chennai from Indonesian Port and then transported to Raichur by trucks.

"We are constructing a Railway siding in Raichur which will ensure regular supply of coal to our integrated steel plant there." Agate, which has set up an office in Indonesia, would obtain necessary approvals from the country and local authorities.

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