Mine closure puts Aussie miner's India investment plans on hold Move comes as a result of closure of Surda Mine by Jharkhand govt
At a time when India and Australia recently inked the civil nuclear pact and both countries are looking to boost bilateral trade, Australia's India focused mining firm India ResourcesLtd (IRL) is exploring options to putan end to its India story and make an exit from India.
The move from Australia based company comes as a result of closure of Surda Mine by Jharkhand government. State owned Hindustan Copper Ltd for which IRL does the mining has not been able toprovide the license renewal for mining.
Arvind Misra, MD of the Perth based company told thisnewspaper that such inordinate delays despite investments made by the companyare forcing the firm to hold off its major investment plans for India.
"In Surda alone we have invested close to Rs 100 crore andhave plans to invest about Rs 1200 crorefor exploration business in Rajasthan but closure of our mine is a setback forus and we are exploring all options including exiting from India," he said byadding that company cannot go on make investments despite mounting losses inIndian operations due to inordinate delays.
It is learnt that Hindustan Copper's Surda mine, for whichIRL was supposed to do the mining, employs about 1200 tribal. For the past fewyears, IRL has been carrying out mining operations in India for coal andnon-ferrous metals. Being one of the leading foreign contract miners to operatein India, IRL had restarted the Hindustan Copper's Surda mines in Jharkhand in 200.
It was also the lowest bidder to operate Hindustan Copper's Rakha copper minesin Jharkhand. Earlier, India has attracted several foreign miningcompanies such as Australia's Thies and Polish mining major Kopex.
However, according to experts, proceduraldelays such as the one being witnessed in IRL's case, could add to further embarrassmenton India's reputation in doing ease of business.
IRL Price at posting:
0.7¢ Sentiment: Hold Disclosure: Held
