Ferro alloy producer Rohit Ferro Tech Ltd (RFTL) plans to diversify as a mining player in the next couple of years.
After Indonesia deal, firm on the hunt in Iran and Oman
MUMBAI: Ferro alloy producer Rohit Ferro Tech Ltd (RFTL) plans to diversify as a mining player in the next couple of years.
The company, which recently acquired coal mines in Indonesia, is on the lookout for chrome ore and manganese mines in Iran and Oman and also in the domestic market.
Ankit Patni, joint managing director, RFTL, said, “We have entered mining through our acquisition in Indonesia and looking at having a sustainable and sizeable interest in mining business in some years.”
He said the company is targeting a 100% raw material security in the next five to six years and will look at opportunities both in India and abroad. Though RFTL has not earmarked standard set of funds for investing in the mining business, Patni said the company is well positioned to grasp any upcoming opportunity.
He said RFTL is looking beyond captive consumption of raw materials and would like to sell off-takes in the open markets as well. Currently, the company has expressed interest in some chrome ore and manganese ore mines in India; the application is pending with the government.
“We will look at acquiring mines wherever we can see some synergy with our present business and our future plans,” Patni said.
The company recently entered into a memorandum of understanding (MoU) with PT Pacific Samudra Perkasa to acquire 60% economic interest in two coal mining companies in Indonesia through SKP Overseas Pte Ltd (SKP), the company’s wholly owned subsidiary in Singapore.
The two mines - PT Palopo Indah Raya and PT Bara Prima Mandiri, have a total of 25 million tonne of coal reserves. While, Raya has 20 million tonne of thermal coal reserves, Mandiri has approximately 5 million tonne.
RFTL expects production from Raya to begin from July this year, and it will be June 2009 for Mandiri to get operational.
The two mines would meet the current coking coal requirements of RFTL for manufacturing ferro alloys and future needs of thermal coal for its proposed 110 mw captive power plant at Jajpur. The output of these mines would also be used for external sales, said Patni.
“We are planning to sell up to 1.5 million tonne of thermal coal and 8,00,000 tonne of coking coal in the open market every year,” said Pramod Jain, chief financial officer, RFTL. The mines are expected to be exhausted in the next 10 years for thermal and five years for coking coal, he said.
m_promit@dnaindia.net
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}