Ann: Surda mine update, page-2

Sorting out the fact from the fiction.
"The process of obtaining Environmental Clearance may potentially take several months ( anywhere from 3 to 12 months). "
Fiction ..... There is absolutely no way that Environmental Clearance will be granted in 3 to 12 months.

Fact.....Judging from other mines where Environmental Clearance is required 12 months to 48 months would be closer to the mark.

Fiction ......" and to agree upon the compensation IRL will be paid to continue its care and maintenance of the mine"

Fact ....... HCL still hasn't paid the $2 million from the arbitration  settlement 15 months ago, what chance is there that HCL will pay anything to IRL now that they are losing $1.4 million per month in profits from Surda.
Its about time that Directors come clean with shareholders.

Australian company India Resources cuts jobs at HCL's Surda mine
Rakhi Mazumdar, ET Bureau Dec 12, 2014, 11.11AM IST

(IRL, which has operated Surda copper…)
KOLKATA: Australian contract miner India Resources (IRL), which operates Hindustan Copper's lucrative Surda mine, said it has terminated services of 1,200 employees, following the closure of the mine due to the Jharkhandgovernment's refusal to renew HCL's mining lease.
IRL, which has operated Surda copper mine since 2007 and lined up investment of Rs 1200 crore in mining projects in Rajasthan, says given the crisis there is now "real prospect of abandoning our plans in India."
Incidentally, both the projects were included in Prime Minister Narendra Modi's recently launched Make in India campaign.
IRL's decision, stated in an open letter to employees on December 8, came as a shock in the primarily tribal belt of Mosabani where the loss of livelihood of 1,200 full-time IRL employees is leading to social unrest. IRL will maintain only a skeletal staff of about 200 for maintenance jobs like de-watering the mine. With stoppage of work at the mine, maintenance staff too, are not being allowed to go in.
"We were forced to take the step since there is uncertainty about reopening of the mine. Our shareholders are getting anxious," IRL managing director Arvind Mishra told ET. The mine was closed following the Centre's directive on July 18 asking states to clamp down on mines operating under second or third deemed renewals.
"We had no other option, but to issue termination notices to excess employees and only carry on with some workers employees for carrying out essential services of the mines, to keep the mine fit to start after the mining lease is renewed," Mishra said in his letter to employees. HCL is fighting its case with the state government but with Jharkhand going to polls, decision-making has come to a virtual standstill. IRL too has approached the mines ministry through the Australian high commissioner.
"We are pursuing the re-opening of our mine with state authorities.It is the best mine in Jharkhand and we are the country's only copper miner. Being an underground mine, it may get submerged due to prolonged closure. We stand to lose not only the mineral but also equipment inside the mine with little chance of reviving it," HCL's director (mining) Abhijit Ghosh said. Since 2007, mine productivity has gone up 60% to 40,000 tonnes of ore. As per the agreement, HCL pays IRL per tonne of copper concentrate.
The mine closure has given rise to a piquant situation over who will bear the cost of maintaining the mine till the lease is renewed. "Mining is fraught with several risks, from exploration to development to mine closure. In a (mine developer and operator) MDO system there has to be a logical framework of sharing and managing such risks," said Anjani Agarwal, national leader, metals and mining, E&Y.
IRL says it is unfortunate that it had to resort to job cuts when the Make in India campaign has been launched. "We brought FDI (foreign direct invesment) in mining with plans to invest further. If India wants to attract FDI in mining, investors need a certain confidence level. However, it appears even delayed paperwork can jeopardise a running mine and with it investment plans by foreign companies," Mishra added.