Orissa firm eyes Maharashtra mines

The company is currently in the process of drawing up an investment and marketing roadmap for the mines. It is expecting the allotment very soon. The company is planning to meet the capital requirements through internal accruals.

"We have committed to the state government about "value addition" to iron ore. On receiving mining leases, we would finalise our future plan to exploit the mineral and sell them to domestic players," said Subhash Sharma, managing director of Resurgere Mines.

The state government has already allocated a bauxite mine with a reserve of 4.9 million tonnes to the company. Plans are afoot to commence commercial production of bauxite in the fourth quarter of the current financial year, if the state pollution control board clears the project. However, the company has already obtained clearance from local environment bodies and concerned ministry to start the project.

As on July 1, 2001, Maharashtra has about 4.65 million tonnes of iron ore reserves and 30.145 million tonnes of bauxite, mainly in Bhandara and Satara districts. The country has a total recoverable iron ore and bauxite reserves of 13,010 million tonnes and 2,525 million tonnes, respectively.

The company focuses mainly on exports of iron ore lumps to China from its two mines in Orissa and one in Jharkhand, with a cumulative reserve of 74 million tonnes.

It is now planning to expand activities across the country with an eye on domestic steel makers. The company also facilitates exports from mines in Madhya Pradesh.

Resurgere has also drawn up plans to set up modernised plant and own railway rakes at an outlay of Rs 281 crore.

"We have already placed orders for plant and machinery worth Rs 128 crore with Voltas, L&T and a couple of domestic and global players. We have also placed an order for three rail rakes at an estimated cost of Rs 115 crore," said Sharma.

The company is also planning to raise around Rs 128 crore through an initial public offer in August, while a sum of Rs 86 crore would be sourced through term loans from ICICI Bank and Union Bank of India.

India exports about 95 million tonnes of iron ore, mainly to China. Of this, 45 per cent is shipped from Goa alone.