India's OMDC to Invest $220 Million in Pelletization and Beneficiation Plant in Thakurani Iron Ore Mines

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Researched by Industrial Info Resources (Sugar Land, Texas)--Orissa Minerals Development Limited (BSE:590086) (OMDC) will construct a 2 million-ton iron ore pelletization plant and a 2 million-ton beneficiation plant at its Thakurani iron ore reserves in the Keonjhar district of Orissa at cost of $220 million.

OMDC will increase iron ore production from the Thakurani reserves to 10 million tons per year and manganese ore production to 1 million ton per year by 2015.

The company has access to almost 206 million tons of iron ore reserves and 44 million ton of manganese ore reserves across six mines, spread over 4,365 hectares in Thakurani. The biggest mines of iron ore and manganese will become operational this month. Sesa Goa (BSE:500295), which also operates iron ore mines at Thakurani has a reserve of 313 million tons. Officials said that the Indian Bureau of Mines has been asked to make a re-assessment of iron ore reserves under OMDC, and it is unofficially forecast the reassessment could result in establishing twice the current reserves of 206 million ton.

Satish Chandra, the chairman and managing director of OMDC, said that the iron ore mine will initially produce 300,000 tons per year and an application to increase production to 3 million tons will be received shortly. Another iron and manganese mine nearby at Kolha Roida with an area of 254 hectares will go into production around March 2011, Chandra said. Once the first of the Thakurani iron ore mines is developed, OMDC will produce 1.2 million tons of ore and ramp it up to 10 million ton per year in phases by 2015.

Chandra said that OMDC was currently looking at diversification plans to undertake mining activities overseas for assets such as gold, diamonds and coal.

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