Hopes Perdaman case to be resolved soon
Lanco Infratech Limited is planning to gradually increase the output from the Griffin coal mines located in Western Australia.
The company has finalised plan for increasing the output – both from a short term perspective and in the long term.
Steps are under way to increase the output to 5.5 million tonnes per annum (mtpa) by March 2014, according to T. Adi Babu, Chief Operating Officer, Finance, Lanco Infratech.
The coal mines are estimated to hold total reserves of over 1.1 billion tonnes. The company expects to secure various clearances by the end of the current financial year.
This will enable the company to commence work on hiking output.
The coal mine had an output of 0.8 million in the first quarter of the current financial year, which was higher compared to 0.7 million tonnes it logged for the corresponding quarter last year. The mine yielded lower revenues as exports were impacted due to low coal prices.
During a recent interaction, Adi Babu told Business Line that the company is planning to hike output to 5.5 mtpaby March 2014.
However, it is planning major investment in the next phase which will see the capacity being enhanced from 4 mtpa to 18 mtpa. Work on this phase will commence in 2014.
The company is facing a legal battle with Australian company Perdaman Industries over coal supply contract from Griffin mines. Perdaman had filed a lawsuit alleging non compliance of contractual obligations.
“However, the company is confident that the case will be resolved by the end of the current financial year or in the first quarter next year,” he explained.
The company auditors had made certain qualifications with regards to Lanco Resources International Pte Limited, which had acquired Griffin Coal and Carpenter Mine through a step down subsidiary.