Ashapura Minechem seeks partner for Maharashtra project

Ashapura Minechem, a diversified mineral group with interest in bauxite and bentonite mining and exports, is planning to rope in a joint venture partner for its Rs 4,200-crore mega alumina project in Maharashtra.

The company is in talks with a few North American and Chinese companies for a possible partnership, said Managing Director Chetan Shah.

The company is in preliminary talks with a number of interested global investors, but the Chinese company, which is the technology supplier of Vedanta Group company, might be the preferred choice, he said. The partner is likely to be finalised by six months.

Ashapura will tie up financing for the project, mostly with debt, in the next 18 months. The debt equity ratio is expected to be in the range of 2:1, Shah said.

The company is seeking rights to mine bauxite on 14,000 acres, which is under consideration of the Maharashtra government. Incidently, the company is yet to get approval for exploring bauxite reserves in the state, for which it had filed application almost eight years earlier.

Maharashtra Chief Minister Ashok Chavan said the state government was awaiting a clearance from the central government for granting mining leases. “The decisions for mine allocations rests with the central government. When we receive formal approval from the Centre, we will issue the letter of intent to the respective companies,” Chavan said.