JSW Energy to buy Canadian firm for C$422 m

Mumbai: JSW Energy is to acquire Toronto-listed CIC Energy for about Canadian $422 million.

CIC is developing the Mmamabula Energy Complex at its Mmamabula coalfield in south-eastern Botswana.

There are plans to develop coal mines, set up power plants and convert coal to hydrocarbon there.

The deal is expected to be completed by the last quarter of this fiscal.

Coal reserves

Mr Sajjan Jindal, Chairman, JSW Energy, said, “CIC has approximately 2.6 billion tonnes of coal reserves in the Mmamabula region which are NI 43-101 compliant. The reserves have good quality thermal coal with low sulphur content that is adequate to meet all the project requirements of JSW Energy.”

Coal production in the fields is expected to commence in three to five years.

Mr N.K. Jain, Vice-Chairman, JSW Energy, said: “The reserves can be exploited with an exportable surplus of up to 20 million tonnes per annum over the next 40 years. The reserves can also meet the requirement to set up power plants in Botswana with a capacity of up to 2,000 MW.”

The acquisition will be effected by a step-down subsidiary of JSW Energy.

In May, JSW Steel acquired coking coal mines in the US to tie up supplies for its steel plants, besides the acquisition of coal assets by JSW Energy.

JSW Energy has an operational capacity of 1,430 MW. Additionally 1,710 MW of generating capacity is in an advanced stage of completion. The company is targeting an aggregate generating capacity of 12,070 MW by 2015-16.