'Also MNM will still need to pay 50% of all mining costs, rail freight costs as well as any upgrade of the rail line to Geelong and any port upgrades. Exergen are only suppling the CHDT plant as I understand it.'
If MNM has not merged fully with exergen by the time the full scale plants at BM and the LV are to be built then I will be very surprised.
The total farm in and project mgmt of BM by exergen under the JV makes that pretty obvious.
A reverse takeover also explains why the terms of the BM JV are so generous. 50/50? And they pay all the costs and provide the tech?
That kind of deal is only obtained if the dominant (for which read cashed up to the hilt!) player knows the payments will end up being circular in nature.
Exergen (which thanks to FOI we know must be read as a code name for 'Tata Power') know very well that buying MNM's superb coal projects throughout Australia is no brainer stuff in an environment where they are under Indian Government orders to secure India's energy needs for the next 30 years.
Would Tata Power be interested in adding MNM's 2-2.5 billion tonnes of BC at BM, likely 10 billion tonnes of brown and black coal in the LV and 500 million tonne+ thermal coal CSG project in Qld to their energy generation larder?
Have a read below, and decide for yourself:
http://www.tatapower.com/aboutus/profile.aspx
'TATA POWER: Lighting up Lives!
Tata Power is India’s largest integrated power company with a significant international presence. The Company has an installed generation capacity of 5297 MW in India and a presence in all the segments of the power sector viz Generation (thermal, hydro, solar and wind), Transmission, Distribution and Trading.
It has successful public-private partnerships in Generation, Transmission and Distribution in India namely “Tata Power Delhi Distribution Limited" with Delhi Vidyut Board for distribution in North Delhi, 'Powerlinks Transmission Ltd.' with Power Grid Corporation of India Ltd. for evacuation of Power from Tala hydro plant in Bhutan to Delhi and 'Maithon Power Ltd.' with Damodar Valley Corporation for a 1050 MW Mega Power Project at Jharkhand.
It is one of the largest renewable energy players in India and is developing country’s first 4000 MW Ultra Mega Power Project at Mundra (Gujarat) based on super-critical technology.
Its international presence includes strategic investments in Indonesia through 30% stake in coal mines and a geothermal project; in Singapore through Trust Energy Resources to securitise coal supply and the shipping of coal for its thermal power generation operations; in South Africa through a joint venture called ‘Cennergi’ to develop projects in South Africa, Botswana and Namibia; in Australia through investments in enhanced geothermal and clean coal technologies and in Bhutan through a hydro project in partnership with The Royal Government of Bhutan.
With its track record of technology leadership, project execution excellence, world class safety processes, customer care and driving green initiatives, Tata Power is poised for a multi-fold growth and committed to 'lighting up lives' for generations to come.
The Company is on a multi-fold growth path. Here’s a quick look at the projects that are under implementation:
Developing India’s first Ultra Mega Power Project (UMPP) at Mundra, Gujarat Tata Power was the first to be awarded a UMPP in 2007 and has also been the first to have financially closed a UMPP.
Mundra's generation capacity is 4000 MW (5 x 800 MW), with saleable power of 3800 MW. Costing about Rs.17,000 crores (US$ 4.2 billion), the project is to be completed within 88 months from the date of signing of the PPA, with the first unit being commissioned on 9 March 2012. Work on Unit 2, 3, 4 and 5 is also on track and units are progressing well.
Mundra UMPP will use imported coal. The choice of supercritical technology will help achieve high efficiency thus saving fuel and reducing greenhouse gas emissions vis-a-vis conventional technology prevailing in the country.
1050 MW Maithon Power Project: The Maithon Right Bank Thermal Power Plant project envisages setting up a 1050 MW (2 x 525 MW) Greenfield coal fired mega power plant at Maithon (Jharkhand), under the aegis of Maithon Power Limited, a 74:26 joint venture between Tata Power and Damodar Valley Corporation (DVC). Unit 1 and 2 have been commissioned and stabilized.
236 MW Dugar Hydro Project: The Tata Power - SN Power (Norway) Consortium JV won the bid for 236 MW Dugar Hydro Power Project in Himachal Pradesh. The run of the river “Dugar Hydro Electric Project” will primarily feed the Northern grid. Currently, the project is being optimized for 500 MW.
1600 MW Coastal Maharashtra Project: All statutory clearances required to start the project implementation are in place. Land acquisition is in progress. The Company also signed an Agreement with Maharashtra State Government for the Relief & Rehabilitation (R&R) package for the farmers in the Dehrand / Shahpur villages. Economic options for coal sourcing and logistics are under evaluation.
1980 MW Tiruldih Power Project, Jharkhand: The process of land acquisition for the project is in progress. In-principle clearance has been received from Railways for transportation of coal from Tubed Coal Block. Tubed Coal Block has been jointly allotted to Tata Power and Hindalco in Jharkhand.
660 MW Naraj Marthapur, Orissa: The major clearances for the project have been obtained. Land acquisition is in progress. Land acquisition is currently in progress. The Company has been allotted the Mandakini coal block located in the Angul district of Orissa, along with Monnet Ispat and Energy Limited, and Jindal Photo Limited, which will feed coal to the plant.
Kalinganagar, Orissa 3X67.5 MW (Gas based) +3X150 MW (Coal+gas based): The project is being executed through Industrial Energy Limited, a JV of the Company with Tata Steel Limited in the eastern part of Orissa.
114 MW Dagachhu Hydro Project: Tata Power also has a JV with the Royal Government of Bhutan under which it is implementing a 114 MW Dagachhu Hydro Project with Druk Green Power Company.
240 MW Sorik Marapi Geothermal Project: A consortium led by Tata Power along with Origin Energy Ltd., Australia and PT Supraco, Indonesia won the Sorik Marapi geothermal project in Northern Sumatra, Indonesia. The Sorik Marapi project is estimated to suppor t the development of approximately 240 MW of geothermal generation capacity. And is currently under development.
Leading Renewable player
Harnessing Hydro Power: The Company has an installed hydro capacity of 447 MW in Maharashtra. Tata Power and Norway-based SN Power entered into an exclusive partnership to develop hydro power projects in India and Nepal. The consortium bagged the “240 MW Dugar Hydro Electric Project” in Chenab Valley in Himachal Pradesh, India. Tata Power also has a JV with the Royal Government of Bhutan under which it is implementing a 114 MW Dagachhu Hydro Project with Druk Green Power Company. The Company is also looking at other opportunities to bid in the near future.
Harnessing Solar Energy: Tata Power has a strong portfolio of 28+ MW of solar generation capacity. It commissioned its solar power project of 25 MW in Mithapur, Gujarat in January 2012 and has also executed a 3 MW solar photo-voltaic plant at Mulshi, one of the largest grid-connected solar projects in the State of Maharashtra. The Company had set up its first solar power plant of 110 kW, way back in 1996 at Walwhan in Lonavla. A 60.48 kWp solar power plant has been installed on the rooftop of one of the Company’s offices in Mumbai. The power generated by these solar panels is expected to take the lighting load of the entire building.
Innovations: Floating Solar Plant: The Company has partnered with the Australian company, Sunengy Pty. Ltd. to build the first floating solar plant in India.
Harnessing Wind Energy: Tata Power has an installed capacity of 375 MW and plants spread across four states of Maharashtra, Gujarat, Tamil Nadu and Karnataka, the leading states in promoting wind power generation in India.
Exploring Geothermal Power : 240 MW Sorik Marapi Geothermal Project: A consortium led by Tata Power along with Origin Energy Ltd., Australia and PT Supraco, Indonesia won the Sorik Marapi geothermal project in Northern Sumatra, Indonesia. The Sorik Marapi project is estimated to support the development of approximately 240 MW of geothermal generation capacity and is currently under development.
Waste Gas Generation: Tata Power has set up various plants at Haldia and in Jamshedpur (Power 6) based on the blast furnace and coke oven gases which are waste gases from steel making process which help in reducing greenhouse gas emission significantly. It’s looking at other similar projects with Tata Steel.
Focus on Clean technologies: Tata Power is experimenting with span of unique pilot projects across energy sources:
Biomass gasification: A 250kW system using rice husk will be installed at the Tata hydro power plant near Karjat. If successful, this technology can be taken to hundreds of villages.
Concentrated photovoltaic (C-PV): A 13.5kW pilot unit is being developed in which sunrays are concentrated on PV cells and the assembly floats on Walwhan lake (Maharashtra) in order to cool the cells. If successful, this technology can be scaled up across all the lakes that provide hydro power to Tata plants in West Maharashtra and thus generate about 1,000 MW.
Solar powered telecom towers: More than 600,000 telecom towers in India use diesel generator sets to provide power to their antennas. Tata BP Solar is providing solar PV panels that can replace the gensets on 25 such installations. This technology can be upgraded to augment power to local grids.
High altitude wind: Tata Power will test a 35kW turbine mounted on a blimp that will float 333m above the ground to catch winds that are more intense and sustained at that altitude.
Micro wind turbine: The company will test a 2kW wind turbine that can be mounted on roof tops and provide power to homes
OTHER BUSINESSES:
Tata Power Trading Company Limited (TPTCL), It is the trading arm of Tata Power which has expanded its operations to cover the entire country including the North-Eastern states.
TPTCL traded 1711 MUs during the financial year 2009, resulting in an increase in its revenues by 46% to Rs. 882.12 Crores.
The Strategic Electronic Division (SED), It has been in operation for over 30 years and has been pursuing development and production activities for the Indian defence sector. Over 90% of the company's strategic electronic efforts are executed for the defence sector. The division has long-standing relationships with the Armed Forces and DRDO. The Division has developed specialised equipment for Air Defence and Naval Combat Systems.
It is also developing a program to modernize the Airfield Infrastructure for the Indian Air Force.
Tata BP Solar, It is a 51:49 Joint-Venture between BP Solar and Tata Power, Tata BP Solar is a market leader in Solar Photovoltaic technology in India with a turnover of Rs.1147 crores in FY09. The turnover of the Company in India and the SAARC region is about Rs. 270 crores, with exports to BP Solar accounting for about Rs.877 Crores . Nearly 75% of sales is achieved from exports to Europe and USA.'
MNM Price at posting:
12.9¢ Sentiment: Buy Disclosure: Held
