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."
Based in Bethesda, Maryland, India Globalization Capital (IGC) is a materials and infrastructure company operating in India and China. We currently supply Iron ore to Steel Companies operating in China. For more information about IGC, please visit IGC's Web site at www.indiaglobalcap.com . For information about Ironman, please visit www.hfironman.com .Forward-looking Statements: Some of the statements contained in this press release that are not historical facts constitute forward-looking statements under the federal securities laws. Forward-looking statements can be identified by the use of the words "may," "will," "should," "could," "expects," "post", "plans," "anticipates," "believes," "estimates," "predicts," "intends," "potential," "proposed," "confident" or "continue" or the negative of those terms. These forward-looking statements are based on the existing beliefs, assumptions, expectations, estimates, projections and understandings of the management of IGC concerning PRC Ironman with respect to future events at the time these statements are made. These statements are not a guarantee of future developments and are subject to risks, uncertainties and other factors, some of which are beyond IGC's control and are difficult to predict. Consequently, actual results may differ materially from information contained in the forward-looking statements as a result of future changes or developments in our business, our competitive environment, infrastructure demands, Iron ore availability and governmental, regulatory, political, economic, legal and social conditions in China.