CESC to buy stake in Australian mining firm for $10 mn

Kolkata : CESC Ltd, the flagship power company of the RPG Group, will buy 4.8 percent stake in Australia-based mining company Resource Generation Limited for $10 million, the firm said.

“A wholly-owned subsidiary of CESC, Bantal Singapore Pte Limited, has agreed to subscribe $10 million for 12,195,122 shares in Resource Generation at $0.82 per share, representing approximately 4.8 percent of the company’s issued capital,” according to a media release.

Following this issue, RPG Group will have an interest of 11.6 percent in Resource Generation.

Resource Generation Limited has also signed an agreement with Integrated Coal Mining Limited, part of the RPG Group, to extend purchases of coal from its planned Boikarabelo mine in South Africa to 139 million tonnes from 37 million.

The purchases will take place over 38 years, up from 20 years in the original contract signed in September 2010. (IANS)