The move comes in the wake of the closure of Sudra copper mines by the Jharkhand government. Besides, state-owned Hindustan Copper, for which IRL does the mining at Sudra, has not been able to provide the renewal licence for mining.
"The closure of our mine is a setback for us and we are exploring all options including exiting from India," Arvind Misra, managing director of the Perth-based company, told Business Standard, adding that the company has invested about Rs 100 crore in Sudra. The company also had plans to invest about Rs 1,200 crore for exploration business in Rajasthan, which would now be put on hold.
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The company cannot go on making investments in India in the face of mounting losses due to inordinate procedural delays, Misra noted.
It is learnt that Hindustan Copper's Sudra mine employs about 1,200 tribals. For the past few years, IRL has been carrying out mining operations in India for coal and non-ferrous metals. Being one of the leading foreign contract miners to operate in India, IRL had started the Sudra mines in 2007. IRL was also the lowest bidder to operate Hindustan Copper's Rakha copper mines in Jharkhand.
Earlier, India had attracted several foreign mining companies such as Australia's Thiess and Polish mining major Kopex. According to experts, procedural delays such as the one being witnessed in IRL's case, could tarnish India's reputation as an investment destination.