As part of its overseas expansion plan, the Indian mining company, P K Ores Private Ltd, plans to acquire coal mines in the Tete province of Mozambique. It has registered a new firm, Triveni P K Mining Company Ltd, in that country and hopes to acquire the mines under that banner soon.
"We have already applied to the ministry of coal and mines of the Mozambique government for coal mines and it is in final stages", Manas Ranjan Das Pattnaik, director, P K Ores told Business Standard.
The coal mine the company is looking for is estimated to have a reserve of 25 million tonnes.
Though the exact size of the deal will be known after the detail survey, market sources put the value at more than Rs 1billion. This will be the first overseas acquisition by the company.
Similarly, the company is also in talks with the Australian government for acquiring some property there. One of the directors of the company will be shortly visiting Australia to assess investment opportunities in the iron ore, coal and diamond sectors. Initially, it proposes to take up survey and drilling work there.
P K Ores recently entered into the Indonesian coking coal market. The company has tied up with PT Krtika Silabumi Mining for taking up mining and selling coal on the basis of royalty at the rate of $ 5 per tonne. The initial investment by the company will be around Rs 90 million. It is also looking for acquisitions in Ivory Coast and has applied for bauxite, manganese and iron ore mines in Ivory Coast along with SODEMI, a state owned company there. It has also directly applied for some gold, manganese and iron ore mines in that country.
The company achieved a turnover of Rs 600million in 2007-08 and targets Rs 2.5billion business during the current fiscal. It plans to start iron ore export from Orissa this month jointly with a leading diamond exporter to help achieve the target.
To achieve exports of about 250,000 tonne in 2008-09, the company has decided to put in two private railway sidings at Barabandha (5 km from Paradip) and at Purjungpur in Joda area of Keonjhar district, entailing an investment of Rs 220million.
P K Ores has applied to the Orissa government for four bauxite mines in the Raygada and Koraput district. It has also applied for tin, gemstone, iron ore and granite mines in Orissa. The company is currently operating from Joda and Barbil in Keonjhar district of Orissa.
Source: Business Standard
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