ET reported that India second largest private shipping company Mercator Lines is looking at acquiring more coal mines in Indonesia as part of its strategy to hedge against the cyclical nature of the shipping business.

According to the report, the HK Mittal controlled company has earmarked up to USD 100 million CAPEX for its coal business and is targeting production of 8 million tonne to 10 million tonne annually from Indonesia over the next five years.

A top level company source told ET that “The Company is in talks with the Indonesian government and some private players for acquiring the coal mines.”

Sources said “We are keen to quickly acquire more mines in Indonesia. We may acquire a coal mine this year itself.”

The company, over the past few years has been attempting to minimize the impact of the cyclical nature of the shipping industry through its foray into other activities. As a result, during the first six months of the current financial year, revenues from offshore, coal handling and coal mining amounted to INR 219.6 crore or 25.7%, of its total consolidated revenues during the period.

(Sourced from Economic Times)