We believe that the iron ore business in India will soon become viable again. The Supreme Court in India recently allowed the reopening of 18 mines in Karnataka. It is expected that more mines will also be reopened. Further, the government has said that it expects to reduce the export duty on iron ore, which would make Indian ore more competitive in the global markets. Mukunda added, "We are gearing up for the eventual opening of this market with a view towards leveraging our strategic positioning in both India and China."Once fully operational, our three-beneficiation plants in China can generate an aggregate of 200,000 to 250,000 tons of refined ore per year. Prices for iron ore are currently about $100 per ton with an expectation that they will increase by the end of the year. Once fully integrated and operating efficiently our projection is to generate a net income of about 20%. We expect to enhance these volumes with low grade ore shipped from India, which will be processed into high grade ore in our beneficiation plants. Mukunda concluded, "We still see strong demand for steel in Northern China and believe that our strategy of positioning the company on building iron ore assets will create significant shareholder value."
India Globalization Capital Restructures Rock Aggregate Business
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