MUMBAI | March 07, 2017: The BSE listed Mangal Credit & Fincorp is diversifying into iron ore mining business. As per a recent filing with the stock exchange, the company along with its subsidiary said it is in the process of acquiring a mine near Goa. The mine is estimated to have iron ore deposits of more than Rs 1,500 crore. Currently, the core business of Mangal Credit is non-banking finance activity and its market-cap stood at Rs 153 crore.
"We are planning to acquire a 21 hectare iron ore mine for exploration at village ADANE on the Maharashtra Goa boarder,” the company said while replying to a query from ET. "The mine has 62 Fe content iron ore as per valuation report and the deposit is estimated at Rs 1500 crore over a period of five years."
According to a company official, Mangal Credit was simultaneously negotiating a mining lease contract with a large conglomerate for five years for a monthly consideration of around Rs 3 crore. As per company website, Mangal Credit is also into financial broking, logistics and IT and equipment leasing.
The mining lease auction for extracting limestone, iron ore, diamond and gold were conducted in various states in the country last year after the January 2015 amendment to the Mines and Minerals (Development and Regulation) (MMDR) Act, 1957. Analysts say another 150-200 mines minerals will up for auction in 2017-18.
Reportedly, the production of iron ore, third-largest solid mineral produced in India after coal and limestone, jumped 22% in April-October period to 100 million tonnes in 2016 from the previous year. Exports, however, rose nine-fold to nine million tonnes in April-September 2016 from same period on 2016.
Key catalyst for iron ore miners has been the firm ore price in global markets, around $70 a tonne, in recent months. Also, the steps taken to protect primary steel industry from cheap imports of steel has helped iron ore miners. Estimates suggest that India needs around 150 million tonnes of iron ore at current production of steel.
(Source: http://economictimes.indiatimes.com/)