MMTC, Sical sign pact for iron ore loading terminal project

New Delhi: MMTC Ltd has signed a formal shareholders’ agreement with Sical Logistics Ltd and L&T Infrastructure Development Projects Ltd for setting up a permanent iron ore loading terminal project at Ennore Port in Chennai.
The consortium would pool resources and skills for setting up theproject. MMTC will hold equity 26 per cent stake in Sical Iron Ore Terminals Ltd (SIOT), the special purpose vehicle (SPV) building the 12 million tonnes per annum iron ore terminal and Sical will hold 63 per cent stake. The balance will be held by L&T Infrastructure.
The shareholders’ agreement was signed on behalf of the respective companies by the Chairman of Sical , Mr Ashwin C Muthiah, MMTC’s Director (Marketing), Mr Sunir Khurana and L&T IDPL’s Head – Legal & Secretarial, Mr R. Chandrasekaran, on Thursday, a company spokesperson said here.
The terminal is expected to be operational in a phased manner by early 2010, with a throughput of 6 million MTPA in phase 1. SIOT and MMTC have signed the offtake agreement for 3 million MTPA of iron ore for the first phase, which will be enhanced postcapacity addition in Phase 2 of operations. The company will execute the second phase within two years of commencement of operations of Phase I.
On the signing of the agreement, Mr Ashwin C Muthiah said, “We are pleased to partner with MMTC on our greenfield iron ore terminal project at Ennore Port. Both Sical and MMTC share a common vision of driving growth through investments in trade-related infrastructure in the country. We are confident that the upcoming terminal will greatly benefit the industry by enhancing capacity and reducing lead times in reaching international markets, with innovative and efficient logistics solutions.”
Mr Sanjiv Batra, Chairman and Managing Director of MMTC said, “MMTC is delighted to be associated with a premier logistics player like Sical, known for its world class logistics infrastructure and services. With this agreement, we will be able to leverage our shared expertise in international trade and logistics for a fresh, more customer-centric approach.”
The total project cost is estimated to be Rs 500 crore - Rs 390 crore in Phase I and Rs 110 crorein Phase II. Sical achieved the Rs 340 crore financial closure in March 2008 with a syndication of leading banks.