GMR Coal Resources Limited (GCRL), a stepdown subsidiary of GMR Power and Urban Infra Limited (GPUIL), has said that it has entered into definitive agreements to divest the 30% stake it holds in the Indonesian coal mine operator PT Golden Energy Mines (PT GEMS) to PT Radhika Jananta Raya, a subsidiary of mining solutions provider, PT ABM Investama Tbk (ABM), following a competitive bidding process.

Green energy initiatives in mining

In a statement, GCRL said that on closing it will receive a gross consideration of US$420m. Furthermore, the company will also receive a deferred consideration based on mutually agreed milestones.

It added that the transfer is subject to customary approvals, as applicable.

Commenting on the divestment, Mr. Grandhi Kiran Kumar, Corporate Chairman, GMR Group, said: "Coming on the back of demerger and our strategy to deleverage balance sheet, this divestment would provide impetus to the non-Airport business through reduction of leverage and provide a platform to grow our green energy initiatives. This divestment reiterates GMR Group's strategy of focusing on its core infrastructure business and exiting non-core businesses."

Energy, Transportation and Urban Infrastructure sectors

GPUIL is a subsidiary of GMR Enterprises Private Limited (GEPL), the holding company of the GMR Group. The group is a global infrastructure conglomerate with interests in designing, building, and operating airports. It also has a significant presence in the Energy, Transportation and Urban Infrastructure sectors.

GMR Group is currently developing three major greenfield airport projects in India and Greece – with the Goa and Bhogapuram airports in India set to play a major role in transforming regional economies and landscapes in their surrounding areas. The Crete Airport project is also expected to have a similar effect, the company said.

PT Golden Energy Mines is a holding of 18 subsidiary companies and is an Indonesian-based bituminous coal mine operator that owns and operates five coal mining concession areas in Indonesia, covering an aggregate area of 66,000 hectares in South and Central Kalimantan, Jambi and South and West Sumatra.

The company’s flagship mine is PT Borneo Indobara, which is located in South Kalimantan. It has 14 years remaining on its concession and approximately 1bn mt of coal reserves.