Japanese consortium picks up Griffin coal-fired power stations in deal valued at $1.1B

By Dorothy Davis

A Japanese consortium comprised of Kansai Electric Power and Sumitomo Corporation has picked up the last assets of Griffin Coal in Western Australia, through the purchase of the Bluewaters 1 and 2 coal-fired power stations. 

Administrators for Griffin Coal, KordaMentha, said the sale would take place in two parts, and its completion was still subject to a number of conditions.

Terms of the sale were not disclosed but sources indicated it was valued at about $1.1 billion.

Reuters reports Korda Mentha attempted to sell the Bluewaters power stations last year but put the effort on hold after bidders were reluctant to bid until they knew who the owner of the coal operations would be. The mines supply the coal to run the power project.

Last month India’s Lanco Infratech reached an agreement to purchase Griffin’s Collie coal mines for $830 million and revealed plans to invest a further $1 billion on a major expansion of the mines. 

The Griffin Group collapsed in January last year with nearly $1 billion in debts, which were linked to development costs for the Bluewaters 1 and 2 coal-fired power plants. It reported $19.1 million profit in 2008 but escalating production costs turned that to a $20 million loss in 2010. 

For the most up to date and in-depth information on the Coal Generation market visit PennEnergy's comprehensive Research area to access industry focused Reports.

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