BEML plans JV with Indonesian firm for contract mining

Bharat Earth Movers Limited (BEML), a defence PSU, is forming a joint venture company with Indonesia-based Sumber Mitra Jaya to enter into contract mining. The latter operates a 14 million tonne per annum coal mine along with a Hyderabad-based private mining company.

"Our aim is to exploit the business potential in coal mining and make use of the huge coal reserves, estimated at 20 billion tonnes, in the country. The joint venture company will get into contract mining after the allotment of coal reserves by Centre," BEML chairman and managing director V R S Natarajan said.

The JV will have an authorised capital of Rs 100 crore. While 45 per cent equity will be held by BEML, 46 per cent will be held by the Hyderabad-based company, the remaining 9 per cent equity will be given to the Indonesian firm, he said.

He told reporters here on Friday: "Since BEML cannot get the coal reserves directly from the government, our JV will form more joint ventures with firms which will be allotted coal mines by the government of India. We will use our mining and construction equipment to extract coal deposits with the technical knowledge from Hyderabad-based firm and use the marketing expertise of the Indonesian firm," he said.

The new JV company, expected to be operational during the next fiscal, will initially handle one million tonnes of coal.

This is expected ro fetch an estimated Rs 150 crore to Rs 200 crore turnover annually, he said.

Natarajan said that huge potential exists for excavation of underground coal and to tap this business, the company has brought out new products like side discharge loader and load haul dumper.

Further, a number of equipment developed by the erstwhile BGML like winches, winders, shaft drills among others are being marketed, he said.