You can say that again...
"The increasing delay in getting projects approved in India has already tested the patience of our shareholders"
"With the mine getting shut, what do we tell our shareholders?" Mishra said."
Run away as fast as you can.
IF IRL wins the Supreme Court Case, then the best option is shut down the Surda Mine permanently and sue Hindustan Copper for the millions that was invested in the mine and Mosabani concentrator.
ONE QUESTION remains and I encourage shareholders to ask the Directors, does IRL have a legally binding contract for the 3 year extension to the Surda Mine Contract.
I hope for their sakes they have, otherwise it would be best they go.
If they do, then walk away from Surda and sue the pants off HCL, as HCL should not issue a contract or sub lease if they don't have an approved Mining Licence. Word of mouth is not enough when you deal with people like HCL.
Might be time to try and recoup the million of dollars poured down the drain.
Hindustan copper makes AUD$1.2 million per month PROFIT or more than AUD$14 million pa PROFIT, and poor IRL can't even pay Directors wages without issuing more shares and diluting the hell out of existing shareholders.
Overall I think IRL should be proud of its hard work in refurbishing the Mosabani concentrator and reopening the Surda mine and the excellent safety record plus the employment of 1400 poor Indians.
The fact remains that IRL shareholders have lost big time and its about time that HCL starts to pay substantially for its uncompromising position. If IRL goes back to work under the previous contract then they are bigger fools than I thought.
I hope that IRL's legal team is working overtime.
KOLKATA: India Resources Ltd (IRL), the country's sole foreign mine operator, which has been running Hindustan Copper Ltd's Surda mines since 2007, has said indefinite closure of its only revenue earning-mine in Jharkhand may compel it to withdraw planned investments in India. The Australian contract miner, which has Resource Capital and Noble group as investors, plans to invest more money in India.
"IRL is the only foreign contract mining company working in India.We have so far invested almost Rs 200 crore in India. This includes Rs 90 crore spent on reviving the closed Surda mines in Jharkhand and the rest in exploration activity across the country. We have lined up a further investment of Rs 1,200 crore in the Aravalli project in Rajasthan through our subsidiary , Crown Mining," said Arvind Mishra, CEO of India Resources.
"However, the latest development in Jharkhand comes as a blow. HCL has given stopwork instructions. They are working to have it reinstated. No one knows how long it will take. This is a huge setback for us. This kind of uncertainty puts a question mark on business continuity in India."
The Jharkhand order, which follows the Centre's July 18 directive asking states to clamp down on mines operating under second or third deemed renewals, has affected a large number of mines including 12 out of the state's 17 operational iron ore mines. The development follows Australian Prime Minister Tony Abbott's recent visit to the country and comes at a time when business links between Australia and India are growing stronger.
Listed on the Australian Stock Exchange, the Perth-based company that recently inducted top investors such as the Noble group and the $12-billion Resource Capital group to invest in projects in India, has been facing shareholders' questions about its operations in the country.
"The increasing delay in getting projects approved in India has already tested the patience of our shareholders. Surda is our only revenue-generating mine.Our association there has helped HCL reap substantial profits over the years. With the mine getting shut, what do we tell our shareholders?" Mishra said.
The Jharkhand order has also brought production to a grinding halt at SAIL's biggest mines at Kiriburu -Meghahatuburu, Budhaburu and Durgaiburu and led to closure of Tata Steel's Noamundi mine.
IRL Price at posting:
0.6¢ Sentiment: Buy Disclosure: Held
