Order worth €2.5 m; equipment to be used in low-grade iron ore beneficiation
McNally Bharat Engineering Company Ltd (MBECL), a BM Khaitan group company, is making an entry into Latin America through its Cologne-headquartered 100 per cent step-down German subsidiary, MBE Coal & Minerals Technology GmbH.
The German arm would supply a floatation system for low-grade iron ore beneficiation to unlisted Compania Mineria del Pacifico SA (CMP) of Chile, at a cost of €2.54 million.
The floatation system is to be located at El Romeral Mine in La Serena, IV Region. El Romeral Mine produces iron ore fines, lumps, and pellets feed. CMP bought El Romeral in 1971 from Bethlehem Iron Mines Co.
This is the second major engagement of the German engineering and procurement outfit of the group in the area of iron ore processing after it was acquired by MBECL in 2009. The German arm last year received an order from Assmang Ltd of South Africa for the delivery of eight magnetic separators at a total consideration of €15.4 million.
The floatation system for CMP is to be delivered in November. MBECL and its indirect subsidiary are pursuing opportunities in the global mining arena separately. In Zambia, MBECL got involved on its own in a copper mining support engineering project.
MBECL recorded a net operational income of Rs 490 crore in the October-December quarter of the current fiscal, up from Rs 378.53 crore in the June-September quarter. For the first 9 months, its income stood at Rs 1,348.08 crore.
Williamson Magor, the holding company of MBECL, pledged 10,00,000 shares of MBECL on February 14 to IL&FS Financial Services Ltd. The fresh pledged shares represented 3.22 per cent stake in the engineering company. It has taken IL&FS Financial Services' total current holding of pledged MBECL shares to 17.15 per cent. The paid-up equity capital of MBECL stands at Rs 31.09 crore.