GJR ties up with P T Earthstone for mine development
The GJR group, a leading mining and steel conglomerate, has partnered global firm P T Earthstone Resources to explore mines in Indonesia.
By PTI |
BANGALORE: The GJR group, a leading mining and steel conglomerate, has partnered global firm P T Earthstone Resources to explore mines in Indonesia.
The GJR group on Monday announced that it has plans to acquire 50 per cent 'economic interest' in the global firm's project tenement in Sumatra and would invest 30 mn dollar for mine development CMD GJR Group of Companies G Janardhan Reddy said on Monday.
"With a total mining area of 438 hectares, the mine located near Nalo Baru, Sumatra has estimated reserves for 100 mn metric tones of high grade iron ore. We plan to use ores from the mine for our own captive mines as well sell the ore to the international market," Reddy said.
US-based John T Boyd Company is evaluating the Nalo Baru Iron Ore tenement and is expected to come out with figures by this September.
The production is scheduled to begin from this October. The JV company has initial production target of three million tons per annum, he said, adding that all the required licenses and permits had been obtained.
"Two SPVs will be floated to structure the transaction, the first SPV shall carry out mine development and the second will carry out the marketing activity of the iron produced by GJR," said Reddy, who is also the minister of tourism in Karnataka government.
The GJR Group comprising Obulapuram Mining Company and Bramhani Industries Limited, are involved in various businesses, from iron ore mining to steel production. The OMC located in AP holds 134 hectares of mineable area.
Start a SIP with as low as ₹500 with ET Money App!
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
