Prakash has been allotted an iron ore mine in Kawardha district of Chhattisgarh and another in Sirkaguttu district of Orissa.
Prakash Industries, which is currently expanding its steel and power generation capacities, is expecting iron ore mining clearances by the end of August.
Vipul Agarwal, director (finance), Prakash Industries, told DNA, “Yes, there has been a delay and we are still awaiting forest clearance from the government. That is the only clearance left.”
He said the company is expecting the clearance by August and will start mining by October. Agarwal said, “There has been a delay with forest clearance as the government has become very stringent with the norms. We have met all the required preconditions. Till then, we will continue to buy iron ore from the open market and continue with steel making.”
Ravindra Deshpande, analyst with Elara Securities (India) Pvt Ltd, in a report on May 31, said, “As the management is anticipating delays in the start of iron ore mining, we have reduced our estimates to give effect for these delays. But we remain confident on the Ebidta margin expansion due to higher sponge iron and billet production, benefits from the power plant in fiscal 2011 and iron ore integration from fiscal 2012.”
Prakash has been allotted an iron ore mine in Kawardha district of Chhattisgarh and another in Sirkaguttu district of Orissa. The Kawardha mine is a major one for the company with total estimated iron ore reserves of 75 million tonnes.
The mine has very high Fe (iron) content of 66-67%. The other mine, Sirkagattu, has 10 million tonne of iron ore with a 65% Fe content. The company is expanding its billets and blooms making capacity from 7,50,000 tonnes to 1 million tonne by March 2011. By the same time its sponge iron capacity will increase from the current 6,00,000 tonne to 1 million tonne.
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