Sell lignite or coal fired TPPs or their single main equipment and forget the pit?

Sell lignite or coal fired TPPs or their single main equipment and forget the pit?

[Feb.-Mar. 2021] Any lignite fired TPP has a lignite open or deep pit in tow. Often such mines are still functional or have stopped operations at the same time as the TPP stopped power generation. In most cases, the mines belong to the same investor. They have valuable mining machines and often the space must be vacated at the same time as the TPP.

Mining machines like bucket wheel excavators or spreaders are high-end machines with a CAPEX of up to Euro 60 million per piece. When valuating a TPP, it is therefore essential to run an asset valuation of the mining equipment and the related inventories, too.

Our troveo team from the specialised business unit of SPRINT! Energy Consulting, has now successfully valuated two large open pit mines and their machines in a South European country. The second-hand market for mining equipment is not much different from the second-hand market for power plants and the key components: A buyer of a used lignite TPP will also often need either the mining equipment to ensure that generation does not suffer due to coal supply interruptions.

Valuate your mining machines, the same way as you do with the valuable TPP equipment. The troveo valuation method can be excellently used to generate the market value of your pit assets and the inventories in place. Such values add to the sale´s offer and enhance the purchase chances in the second-hand market.