• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Brand Quest
• The New Manager

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth
• Events 2007

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

L.N. Revathy

Coimbatore, March 10 Indsil Group has signed an agreement with Nagpur-based Good Earth group to operate an “already” acquired manganese ore mine in Indonesia. The mine was acquired by Good Earth in November 2007.

Spread across 5,000 hectares, the mine, according to Mr Vinod Narasimhan, Managing Director, Indsil Electrosmelts, has rich resources of high grade manganese ore.

“The manganese ore resource in this mine is expected to be around 3 million tonnes of medium and high grade variety. Detailed geological surveys are being conducted for the purpose of accurate assessment. Estimated annual production is expected to touch 3-lakh tonnes per annum,” Mr Narasimhan said.

Reasoning the need for a 50:50 joint venture with Good Earth, he said: “We are large users of manganese ore, as Indsil is engaged in the manufacture of manganese alloys. The Good Earth group is engaged in the manufacture of manganese-based chemicals. They also have significant business interest in mining resources, both in India and Indonesia. We would, through this joint venture, operate the acquired manganese ore mine.”

As per the agreement, the manganese ore would primarily be sold to the group companies for captive usage and surplus material marketed across the globe.

To a question on investment, he said: “It would happen in three phases. We propose to mine out of three pockets and in the first phase, we will start in about 100 hectares on an outlay of $1.5 million. The second phase of investment of $3 million will commence in September in 200 hectares and in the final phase, we propose to invest $3 to $4 million for mining in about 300 hectares.”

He further added that the group would source the resources from its internal accruals for the first and second phase of the project. The group’s turnover is estimated at around Rs 270 crore during 2007-08.

More Stories on : Alliances & Joint Ventures | Mining & Quarrying | Minerals

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Dr Reddy’s inks R&D pact with 7TM Pharma

Copyright © 2008, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line