| The Dempo group, one of the oldest mining group of Goa, has pledged an investment of Rs 850 crore in three phases in Jharkhand.
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| While the Dempos have extended the investment plans and memorandum of understanding to the state government, it is yet to get any reply from the authorities.
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| This will be the first major out-of-Goa venture for the group, though they have started a small venture in Maharashtra where by 2010 they expect to start productions of iron-ore concentrates.
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| However, with the quality of iron-ore much superior to any of the ores available in Goa, Maharashtra or Karnataka, the plans for Jharkhand are much bigger.
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| Tej Bahadur Sahib, chief superintendent of mines, Dempo Group of Mines, said: “We are interested in both Jharkhand and Chattisgarh mines, and only exclusively in iron-ore. But unfortunately we got a cold shoulder from the Chattisgarh government. While the Jharkhand government is also slow in acting upon the plans and giving the lease, they have accepted our proposal.”
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| The Rs 850 crore project includes the Rs 200 crore investment in the first phase, when mining will be started.
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| The duration of the project is two years from the day of the grant of the lease.
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| The second phase of investment will be worth Rs 250 crore when Dempos propose to start the pig-iron production.
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| In the third phase, with the beginning of steel production, the investment will be Rs 400 crore.
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| Along with the rich-grade iron ore mines, Dempos has proposed to take over the low grade iron ore mines around Chaibansa region in Jharkhand also.
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| Said Sahib, “Jharkhand lacks a port if we want to export from there. At the same time the government has already clamped down on exports of good grade iron-ore above 65 per cent. The domestic demand is also at a high with the auto market and infrastructure development booming. So even without exports, Jharkhand is a profitable venture — moreover as coke plants are available within the state, steel will be cheaper.
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| In Goa we are producing pig-iron by importing iron-ore from Karnataka and coke from Australia. So raw material wise it is most lucrative.’’
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| In the last four years, Indian iron-ore exports have mostly been driven by the demand from China and Japan, even when the iron-ore has been a low-quality one. While China is still expecting an eight per cent growth in the steel industry till 2010, it has now become more quality conscious.
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| Said Tej Bahadur, “The exports from Goa will continue as parties will demand this inferior quality iron-ore also. But now with both Indian and Chinese economy poised for a boom, it is best to get in high quality iron-ore mines as soon as possible. We are waiting for the Jharkhand government to give a nod for a 20-year lease, and immediately work will start.”
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| “However, if this does not happen soon, we may get into a tie-up with private parties operating there, but it will be the last resort.” |
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