As it continues its global search for coal, a two-year-old local firm is getting a major shot in the arm.
NRI Management Group, headquartered off Forest Avenue, last week scored another massive capital backing as New York investment firm Apollo Global Management put up $300 million to fund its hunt for coal mining sites around the world.
The deal comes after NRI burned through three rounds of capital from such firms as Barclays, and more than two years after NRI chief executive Gary Rogliano sold his previous coal company, INR Energy, for more than $750 million.
“Our strategy isn’t much different,” Rogliano said of the latest round of funds. “We’re going to build it again.”
The company will scour Australia, South America and elsewhere for sites that have the potential to be developed into coalmines.
“You’re in the jungles of Colombia or in the deserts of Chile. In Australia, you’re out in the outback,” Rogliano said. “We’ve been to Mozambique.”
The company will also pursue mining sites in the United States, Canada and Europe, he said.
NRI gets the mines up and running, staffs them and sells the coal to China, India and countries in Europe.
“Coal prices and properties are depressed, so it’s a good buying opportunity,” Rogliano said. “The growth is outside of the U.S. India, China — they are bringing power to people who don’t even have power yet. They want cheap power, and coal is the cheapest.”
Rogliano said the sites NRI buys are typically about 10,000 acres and cost between $50 million and $125 million. And the money from Apollo’s funds can also be leveraged to give NRI access to even larger sums.
Rogliano also said NRI wouldn’t stop once it burns through the $300 million.
“After that, we’ll do it a fourth time,” he said.