IRL to form more alliances with Indian mining sector

Kolkata: West Australia-based India Resources (IRL) is looking at forming more alliances with Indian private and public sector units in the mining sector especially in base metals, copper, gold and diamond category for carrying out extensive exploration and mining activities based on the outsourced model.

IRL at present has a long term contract with Kolkata-based Hindusthan Copper Limited (HCL) till 2014 for operating and maintaining HCL's Surda mine and is producing close to 4500 ton of Copper (Cu) per annum (pa) for HCL , significantly higher compared to HCL's production from that same mine four years back, said Arvind Misra, operations director, IRL.

We started production last year November and at present we are operating at a production capacity of 4500 ton pa, we plan to maintain and even scale up production to 9000 ton pa ,he said.

IRL has even extended an offer to HCL for increasing the production to 9000 ton per annum, Misra pointed out.

The annual capacity of HCL's Surda mine which was closed for four years due to constraints is 5000 ton per annum, HCL produced close to 3000 ton per annum, IRL produces 4500 ton per annum at present.

Infrastructure provided by HCL supports only 4500 ton of production per annum.

IRL would have to make some infrastructural changes and bring in advanced technology for upgrading production, which requires significant investment to the amount of 25 million Aus $, said Misra. Since HCL is a PSU lots of processes involved we would have to wait, they have shown a keen interest,he added.

IRL would be expecting revenue income of close to 20-25 million Aus $ from this project alone.

The company implemented HCL's Surda project last year July and so far have invested close to 20 million Australian dollars (Aus $) in Surda project alone.

All total IRL invested close to 30 million Aus $ across all the projects in India, the bulk of which went for the Surda mining project.

The investments made in India have been largely funded from the 30 million Aus $ that IRL raised through its IPO in Australian stock exchange last year and through some working capital loans raised from some Indian private banks.

The company is also planning to get listed in India and mulling options.

IRL has spoken to indian companies who look after IPOs and listing procedure to suggest a suitable time.

IRL would go for listing at a suitable time may be second half of next year, he said.

Even though Indian economy has been growing at 8-9 percent, Indian mining sector had been growing at 5 percent which leaves huge scope for growth and intervention.

IRL is also into exploration of base metals and gold in Rajasthan where the company has acquired two reconnaissance permits (RP) and has acquired prospecting license (PL) of diamond exploration in Madhya Pradesh, Andhra Pradesh and Orissa.

One south based gold company had even approached IRL for carrying out gold exploration.We are being presented with lots of opportunities, he pointed out.