The Orissa Minerals Development Company Limited (OMDC) will be investing Rs 1,000 crore in forward integration.
The Bird Group company is planning to put up a two million tonne beneficiation and two million tonne pellet plant at Barbil in Orissa.
“Our proposal for the project is already with the government. Clearances from the ministry of steel, Planning Commission, are required,” OMDC chairman and managing director, Satish Chandra, said on the sidelines of the company’s annual general meeting.
Consultancy Development Center (CDC) under the Ministry of Science & Technology, has been appointed as a consultant to fix an agency to build the plant on turnkey basis.
OMDC, which produced about 50,000 tonnes of iron ore this year, has set a target of achieving a 10 million tonnes by 2013-2014. “With 10 million tonnes of production and subject to clearance of the beneficiation and pellet plant, the turnover of the company will be Rs 5,000 crore by 2015,” Chandra said.
OMDC has six iron ore mines with estimated reserves of about 206 million tonnes. “We have the Indian Bureau of Mines to reassess our reserves,” Chandra said.
The Pollution Control Board of Orissa has given consent to establish and operate all six mines and clearance of Wild Life Management Plan and Forest Entitlement Act for remaining four mines is expected within two months’ time. Forest clearance for the four mines is also expected to be received within a year’s time, after which leases of four mines will mature for renewal.
“The company had targeted a turnover of Rs 300 crore during the current financial year. However, the company’s performance got a severe beating due to non-performance of Narayani & Sons, the agency appointed to mine iron ore in the biggest mine of Kolha-Roida,” Chandra said in his address to shareholders.
Responding to shareholder queries on share-split, Chandra said, it was not being considered now.
The OMDC stock today appreciated five per cent and closed at Rs 31,852.30 on the Bombay Stock Exchange.
