The Hindu Business Line : Dempos inks MoU for mining project in Maharashtra

Goa's iron ore mining group Dempos signed a memorandum of understanding (MoU) with the Government of Maharashtra on Wednesday for a mining project at Kesari Phanasewade in Sawantwadi taluk in Maharashtra's border area.

The group had floated a special subsidiary, Sindhudurg Mining Corporation Pvt Ltd, which has been prospecting for iron ore mines in Sindhudurga district. This is Dempo's first iron ore mining venture away from Goa.

The Chairman of Dempo Group of Industries, Mr Srinivas Dempo, signed the MoU with the Maharashtra Industry Secretary, Mr V.K. Jairath, in the presence of the Maharashtra Chief Minister, Mr Vilasrao Deshmukh, the Revenue Minister, Mr Narayan Rane, and others. The Rs 1,000-crore investment envisaged in the MoU will come in two phases.

Mr Dempo told Business Line on Thursday that production in the first phase was expected to begin in 2008. The investment in the first phase would be Rs 350 crore and about 300-350 people would be employed directly and many more indirectly.

He said that the production capacity of the whole project was 2.25 million tonnes of iron ore concentrates, while the first phase would produce 1 million tonnes through the in-house technology developed for beneficiation.

High value concentrates

He explained that the project involved identifying and prospecting for low Fe banded iron formations available in Sindhudurga district, investing in development of mines for mineral extraction as well as equipping processing plants to produce high value concentrates for supply to major steel mills in the country as well as the international market.

Mr Dempo said that both the Maharashtra Chief Minister and the Revenue Minister had assured support and co-operation for the project to help develop the backward areas of the Konkan region. Allaying apprehensions over environmental issues, Mr Dempo said the company would fully adhere to environmental norms.

Asked about the ongoing controversy over iron ore exports, Mr Dempo expressed confidence that the issue would be resolved by the Central Government and that the iron ore mining industry would not be unduly affected in the future.

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