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MOIL eyes stake buy in Peru mine

The mines has four manganese ore concessions with a proven reserve of 2.95 mn tonnes

Press Trust of India  |  New Delhi 

State-run manganese ore producer MOIL has evinced interest in picking up a stake in Maravilloso Mines in Peru owned by Melrose Mines and Minerals.

"MOIL has shown interest in picking up a participating interest in Maravilloso Mines in Peru. It has four manganese ore concessions with a proven reserve of 2.95 million tonnes," a source told PTI.

Melrose is a diversified mining firm having operating and developing iron ore and manganese mines with reserves of over 400 million tonnes and 30 million tonnes, respectively.

However, MOIL Chairman and Managing Director SP Kundargi said, "Talks are on but nothing concrete has taken shape yet."

Meanwhile, Melrose Managing Director Vijay Saxena has in a letter to MOIL wrote, "As per geological report, the outcrop alone is 2.95 million tonnes of high grade manganese that can be offered to MOIL immediately after the signing of the MoU under a mutually agreed price/cost mechanism."

Saxena said Melrose Peru has already incurred significant expenditure towards promotion of four valuable manganese concessions and to reach to the present stage of development of mines.

"Stage is now ripe to offer a participating interest in the manganese ore mine based on physical availability of 2.95 million tonnes outcrop in hand," he said.

Saxena added the actual reserves in the four concessions could be more and could be gathered following drilling and due diligence by an acceptable company of international repute to be engaged by MOIL.

Melrose has also asked MOIL to work on a draft memorandum of understanding (MoU) outlining respective responsibilities with given time-frame.

First Published: Mon, December 31 2012. 17:35 IST