NAPC gets into overseas mining

Chennai: NAPC (National Asphalt Products and Construction Company), a Chennai-based infrastructure and contractual mining company, is getting into iron ore and manganese mining overseas.

The company, which has experience as a mining contractor in over 20 mines in India, is also diversifying into water management, coal mining, real estate development and ready mix concrete business.

Mr Varun Manian, Director, NAPC Ltd, said that the company is building on its experience in the domestic market to get into its own mining projects.

It has entered into an equal joint venture for two iron ore mines in Wang Pong and Pa Tong in Thailand and manganese mining in Laos. The company will export the ore from these mines to China. The iron ore mining potential in one of the mines spread over 4,000 acres is estimated at about 4 million tonnes. The company has a licence to mine over 5,000 tonnes of ore a day which represents over Rs 100-110 crore in revenues annually. Exploration work is on at the other mine, he said.

The manganese ore potential is estimated at about 2 million tonnes and work on the project is likely to start in three months. The company has entered into a 50:50 partnership with a local player, Mr Manian said.

The company plans to invest over Rs 250 crore in the mining projects. In the first year or two it can manage with internal accruals till the ore sales commence. NAPC is also looking at private equity options or a public offering next year depending on the market situation, he said.

The company will also build on its experience in mining to enter into coal mining, he said.

It is looking at opportunities in water management in the areas of raw water treatment, recycling and effluent treatment. NAPC is in discussions with a German company for a joint venture that is likely to be finalised in a year’s time, Mr Manian said.

NAPC is getting into ready mix concrete business in Abu Dhabi where construction activity is soaring. By the year end it would have a 120 cu m an hour readymix concrete plant. It is looking at setting up commercial RMC units in Chennai.

NAPC is looking at expanding its presence in real estate and development. Last year it invested over Rs 70 crore in the form of private equity in projects of other developers. It now plans to launch its own projects and is looking at investments in the range of about Rs 110-130 crore.