State-promoted listed company Gujarat Mineral Development Corporation Ltd has floated tenders to sell its bauxite calcination plant in Kutch district.
This comes at a time the PSU is busy setting up a Rs 12,000-crore joint venture with Nalco in the State.
The plant, having a production capacity of 50,000 tonnes a year is in working condition but not producing at optimum levels, making it financially unviable, V.S. Gadhvi, Managing Director, told Business Line here on Thursday.
The current output is 160 tonnes a day.
The plant, set up in 1994, has access to seven bauxite mines.
These mines, collectively having about 70 lakh tonnes of reserves, are not being fully exploited due to the plant’s outdated technology.
Besides, GMDC is likely to mine more bauxite from the Saurashtra districts such as Porbandar, Jamnagar and Junagarh where it is carrying out exploration.
In all, GMDC would be mining about 10 lakh tonnes (lt) of bauxite annually in the State in the near future as the Union Government has approved its fresh mining plans of 7-8 lt in non-plant grade (lower grade) and 1.25 lt of plant grade bauxite.
“Our core business is mining, not running a plant. That is why we want to sell the BC plant along with associated equipment, diesel generating facility, accessories and spares,” Gadhvi said.
GMDC has set a floor price of Rs 2.5 crore for the BC plant sell-off, but expects a much higher valuation.
He said the BC plant, requiring high grade bauxite, had been set up as a value additional alternative to check export of bauxite.
The last date of submission of tenders is October 18.