Ashapura Minechem to invest Rs 150 crore in Nigeria, Kerala

MUMBAI: Ashapura Minechem — the largest mine owner, processor and exporter of industrial minerals in India — will invest over Rs 150 crore this year in various projects, including its mining plant in Nigeria and white clay processing unit in Kerala.

The company, which almost doubled its net profits in the last financial year to Rs 130 crore, has also tied up with the US-based Amcol to set up a 100,000 tonne kaolin processing plant in Belgium. The equal JV, formed by both the companies, will produce value-added products from bentonite. Kaolin, also known as white clay, is used to make ceramics, medicine and paper. Amcol has a 20% stake in Ashapura Minechem, which it acquired in 1999.

Ashapura had bid for gold, barytes and kaolin mines in Nigeria last year. It is partnering with Nigerian company Nuel Ojei Holdings. “We have control over 3,800 sqkm of area in the country. The reserves are still to be estimated. There is also the possibility of discovering deposits of non-ferrous metals,” MD Chetan Shah told ET.

The company will initially invest about Rs 35 crore for the project in the first year. For its Kerala project, where it will produce 200,000 tonne of processed white clay, the company will invest Rs 80 crore this year. “We expect to begin production by December,” said Mr Shah. The company’s stock was up 1.6% at Rs 338.6 on the BSE on Friday.