Concentration on Power Generation
KEPCO will transfer its stakes in overseas mines to Korea Hydro & Nuclear Power Co. (KHNP) and its five power generation subsidiaries. As a result, KEPCO will concentrate its efforts on the overseas power generation business, giving up overseas resources development.
According to the government and KEPCO on January 9, KEPCO announced measures for the coordination of overseas business functions in its main business plan for 2017. A KEPCO official said, "We decided to implement our overseas (resource development) business in a way that strengthens role sharing and cooperation among affiliates of the KEPCO Group."
KEPCO plans to sell the remaining 39% of Moolarben Mine, its coal mine in Australian to its five power generation affiliates –- Korea Southeastern Power, Korea Southern Power, Korea Western Power and Korea Midland Power. Prior to this, KEPCO recently sold off Moolarben Mine in Australia to Korea Southeastern Power, Korea Southern Power, Korea Western Power and Korea Midland Power, while its equities in Cokcatoo Mine were transferred to Korea East West Power. In addition, the company sold a stake in a bituminous coal company. That is to say, KEPCO sold a 20% stake (4% each) of its shares in Bayan Resources in Indonesia to the five power generation affiliates and 1.2% equities in Adaro Energy (Indonesia) to Southeastern Power Co.
KEPCO’s uranium mines will be transferred to KHNP. They are four uranium mines -- Dennison Mine, Waterbury Mine, EFI Mine (Canada) and Imouraren Mine (Africa Niger). KEPCO is currently holding 8.18% in Denison, 14.78% in Waterbury, 2.41% in EFI and 5.4% in Imouraren Mine.
The value of KEPCO’s coal and uranium ores and stake in the bituminous coal company sold or to be sold is estimated at much more than 1 trillion won. Its stake in Bylong Mine eclipses each of its equities in other mines and is estimated at 700 billion won. According to the financial investment industry, it is estimated that the combined value of KEPCO’s stakes in the remaining mines amounts to 1.5 trillion won, considering that the book value of its 20% stake in Bayan Resources is over 500 billion won and its investment in the four uranium ore mines stands at about 250 billion won.