GJR ties up with P T Earthstone for mine development

July 22, 2008

July 22nd (Hindu Business Line) – The GJR group, a leading mining and steel conglomerate, has partnered global firm P T Earthstone Resources to explore mines in Indonesia.

The GJR group today announced that it has plans to acquire 50 per cent ‘economic interest’ in the global firm’s project tenement in Sumatra and would invest $30 million for mine development CMD GJR Group of Companies Mr G Janardhan Reddy said on Monday.

 

“With a total mining area of 438 hectares, the mine located near Nalo Baru, Sumatra has estimated reserves for 100 million metric tonnes of high grade iron ore. We plan to use ores from the mine for our own captive mines as well sell the ore to the inter national market,” Mr Reddy said.

US-based John T Boyd Company is evaluating the Nalo Baru Iron Ore tenement and is expected to come out with figures by this September. The production is scheduled to begin from this October.

The JV company has initial production target of three million tonnes per annum, he said, adding that all the required licenses and permits had been obtained.

“Two SPVs will be floated to structure the transaction, the first SPV shall carry out mine development and the second will carry out the marketing activity of the iron produced by GJR”, said Mr Reddy, who is also the minister of tourism in Karnataka gove rnment.

The GJR Group comprising Obulapuram Mining Company and Bramhani Industries Limited are involved in various businesses, from iron ore mining to steel production. The OMC located in AP holds 134 hectares of mineable area.

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