Binani Cement soon to ink deal with Indonesian coal mine

March 19th, 2009 - 6:53 pm ICT by IANS  

Kolkata, March 19 (IANS) Cement manufacturer Binani Cement is in the last stage of finalising a deal with an Indonesian coal block for long-term mining rights, a top official said here Thursday.
“We will finalise the deal very soon. It will provide us with six million tonnes per annum of coal reserve,” Binani Group of Industries managing director Vinod Juneja told reporters.

Binani Cement is the flagship company of Rs.25-billion Braj Binani Group.

Juneja said the company required coal worth Rs.4 billion per year.

At present, the company has the capacity of 6.5 million tonnes of cement per annum from its plant in Sirohi, Rajasthan. Another 2.5-million-tonne plant would be constructed in Gujarat by 2011.

Apart from domestic operations, Binani also has international units. Its plants in in China and Dubai would be capable of producing 2 million tonnes each by 2011.

“We will start our new plant in Mauritius this year. It will have the capacity of one million tonnes,” Juneja said, adding that the company wanted to take the total capacity to 15 million tonnes by 2011.

Binani is expected to touch an enterprise value of $2 billion by 2011 based on an industry valuation of $190-$200 a tonne.

The cement major is also looking at listing in London Stock Exchange Alternative Investment Market (AIM).

The company has also announced its foray into West Bengal. Cement would be transported to the state from its Rajasthan plant via rail route.

However, Juneja ruled out immediate plans for setting up any manufacturing plant in the eastern region.

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