Mineral Exploration Corporation Ltd (MECL) is looking to enter the commercial mining segment through joint ventures with public sector undertakings (PSUs) and also planning to participate in the mines auction.
As part of its diversification plans, the government's mineral exploration arm aims to expand portfolio of services in the mining sector by preparing Feasibility Report (FRs), Detailed Project Reports (DPRs), mining and implementation of Lump Sum Turn Key (LSTK) projects, according to a source.
"MECL is planning to expand its portfolio of services and is planning to make foray into the commercial mining sector by entering into JVs with other PSUs and participate in the upcoming mines auction expected to start later this year in October-November," he added.
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Confirming the development, an official said MECL is looking at making geological reports for exploration projects on commercial and competitive basis as well as undertake geological, geo-chemical and geophysical surveys to establish exploitable reserves of various minerals.
"It is also looking at taking up exploration, development mining projects in association with other companies, which are likely to be from the public sector, but there are talks if the private sector can also be roped in," the official added.
Last fiscal, MECL carried out 4.09 lakh metres of drilling for minerals such as coal, lignite, iron ore, gold, copper, lead, zinc, limestone etc, which is the highest ever exploratory drilling in the company's history. Its financial performance was also highest since the inception.
In 2014-15, the PSU reported a net profit of Rs 26.24 crore and a revenue of Rs 234.31 crore. In the current fiscal, MECL expects a net profit of Rs 30.33 crore and a revenue of Rs 266 crore.
Since its inception, MECL has completed over 1,321 projects and established more than 1.5 lakh million tonnes of ores such as coal, lignite, bauxite, copper, gold, lead-zinc, iron ore, limestone, manganese, magnesite, chromite, among others.
It has also carried out exploration for coal bed methane (CBM), which can be effectively used in various sectors such as fertilisers and steel, and has diversified into mining and beneficiation of minerals, well drilling for CBM and sampling and analysis of coal stocks.
