PVG to acquire mines

Belgaum-based PVG, a company that provides logistics support to mining industry in Karnataka and Goa, is planning to acquire two mines in Orissa and Karnataka.

The Rs 500 crore company is also planning to charter four ships to supplement iron ore mining, procurement, logistics and exports activities.

To this end, the company has teamed up with Kolhapur-based Ghodawat group of industries to charter vessel and take over mines.

"We are looking out mines in Bellari-Hospet and Orissa region for acquisition along with Ghodawat group. We are also setting up a crusher and screening plant for iron ore in addition to benefication plant for upgradation," said Prasanna V Ghotage, founder of PVG.

At present, PVG has presence in handling and transportation of high-value products such as pig iron, low ash mettalurgical coke.

"We have plans to put up a mechanical ore handling plant of two loading machines with conveyor belt which will load 4,000 tonne per hour, one at Visakhapatnam Port and other at New Mangalore Port. This will reduce vessel loading time and save demurrage which will enable fast clearance of vessels," Ghotage said.

In order to fund its expansion plans, the company is also planning to come out with an IPO to raise over Rs 600 crore by end of next year.

Ghotage added that the company is planning acquire 500 odd trucks to its current 3,000 truck fleet. It is also planning acquire railway rakes to transport iron ore.

Currently, the group is exporting iron ore of 3.5 million tonne to China and it has firmed plans to ship iron ore to Romania.