Mercator Lines, the HK Mittal controlled shipping to mines major, will invest about INR 200 crore to INR 250 crore in developing a coal mine in the Batuah region of Kalimantan province in Indonesia as part of its strategy to increase its presence in the high margin mining industry.

People familiar with the development said that the Mumbai based company will invest via a JV with an Indonesian firm PT United Coal to develop the infrastructure for the mining project, while the ownership of the mine will continue to remain with the Indonesian company.

When contacted, chairman Mr HK Mittal said that "We already own four coal mines in Indonesia and are keen to build our ownership here." Total reserves in the Indonesian mines owned by Mercator Lines are about 70 million tonnes and the company plans to raise the total deposits to 100 million tonnes.

(Sourced from Economic Times)