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After recording a loss of Rs 177 crore in 2009-10 because of the global economic meltdown, KIOCL Ltd (formerly Kudremukh Iron Ore Company Ltd) is targeting a profit of Rs 75 crore during 2010-11.
Speaking to presspersons on the sidelines of a national seminar on ‘Explosives and Blasting Techniques for Mining, Quarrying and Infrastructure Industry' organised by National Institute of Technology-Karnataka at Surathkal in Mangalore on Friday, Mr K. Ranganath, Chairman-cum-Managing Director of KIOCL Ltd, said the position looks better for the company during 2010-11.
“After the closure of mines in Kudremukh, we have crossed a production and sales target of two million tonnes. It never happened after the closure of mines. For the year 2010-11, we are likely to make a profit of around Rs 75 crore,” he said.
Stating that the production capacity of the company's plant at Mangalore is being enhanced, he said with the completion of the works the capacity of the plant will be 15,000 tonnes a day at full capacity. “Even it works at 75 per cent of its capacity for 300 days, the plant can produce 3.6 million tonnes a year,” he said.
The company is likely to touch 2.15 million tonnes of production capacity during 2010-11. “Our target is to reach 3 million tonnes in 2011-12,” he said.
Asked about the allotment of mining sites in Karnataka, Mr Ranganath said Chikkanayakanahalli block in Tumkur district is available for mining. The company is one of the eight allottees of mining blocks in that area. The State Government had convened a meeting recently to indicate the mine allotess about the overlapping areas in some blocks. Most of the allottees have agreed to leave the overlapping areas by about 50:50.
The area is around 116 hectares, and after leaving the overlapping areas it will come to around 104 hectares. The company, which can mine around 10 million tonnes of ore from there, hopes to start the work in that area in a year-and-a-half after getting clearance.
The company has made a presentation to the State Government committee requesting it to allot Ramanadurga mines in Karnataka. This will help the company to mine around 200 million tonnes of iron ore. If allotted, the mines can meet the requirements of the company for 10-15 years, he added.
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