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Bethesda, April 8, 2013 (GLOBE NEWSWIRE) -- India Globalization Capital, Inc. (NYSE MKT: IGC) ("IGC" or "the Company") announced the achievement of an important milestone in the execution of its strategic plan. It has scheduled to open the first of three beneficiation plants in Inner Mongolia on April 10, 2013 to drive growth in its iron ore business.
IGC has assembled an experienced team to manage both onsite operations and reporting systems. The plant is equipped with two stages of beneficiation. The first uses dry magnetic separation and the second uses a wet process. These are designed to produce ore with about 66% iron content from low-grade ore. The Company has set an initial production target of 200 tons per day with an approximate selling price of $115 per ton. IGC's initial goal would be to increase incremental production to approximately 500 tons per day as operations ramp-up to three plants.
Ram Mukunda, CEO of India Globalization Capital, said, "Just over a year ago, we articulated a strategy of growth that includes shipping low-grade ore from India to the refining facilities, and through a beneficiation process efficiently convert this ore to high-grade product. This will allow us to increase the out put of our plants and supply larger amounts of refined ore to our customers."
As previously reported, IGC has four properties in Inner Mongolia with over $500 million of estimated reserves. Inner Mongolia, with its extensive coal and iron ore deposits, has become an important steel production center. The Company contracts with regional steel mills that require high-grade iron to fulfill growing demand.
Mr. Mukunda continued, "Our short term strategy remains three pronged: 1) supply high grade iron ore from our beneficiation plants, 2) expand the supply chain for raw materials by shipping low grade ore from India to China, and 3) actively consolidate additional mines in the Inner Mongolia region that can be accretive to the Company."