Griffin sold to Indian infrastructure company

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Thursday, 16 December 2010 10:34

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One of the biggest coal mines in Western Australia, formerly owned by the failed Griffin Coal, has been sold to an Indian infrastructure company for as much as $850 million.

The mine, near the southwest town of Collie, was purchased by Lanco, an industrial conglomerate with a market capitalisation of about $2.6 billion.

The new owners will source coal from the operation for its power stations in India.

Lanco said in a statement on its website that the mine was strategically located for India because it was closer than mines in New South Wales and Queensland.

"The acquisition of Griffin Coal is an important component of our development strategy, providing increased fuel security for our current power generation assets and future power portfolio expansions," Lanco chief financial officer Suresh Kumar said.

"We are committed to expanding Griffin Coal's export capacity."

The thermal coal mine was previously operated by Griffin Coal, which was placed in administration in January after missing deadlines for the payment of debt instalments and tax liabilities.

Griffin Coal, a private company, was chaired by reclusive multi-millionaire Ric Stowe.

The transaction is understood to be one of India's largest-yet investments in Australia and was undertaken by the administrator of Griffin Coal, KordaMentha.

It does not include Griffin's Bluewaters power stations.

The Australian newspaper, without citing a source, said Lanco paid up to $850 million for the mine, beating rival bidders from Japan and China.
AAP

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