This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

India Globalization Capital Completes Test Delivery Of Iron Ore

Stocks in this article: IGC

Bethesda, June 11, 2013 (GLOBE NEWSWIRE) -- India Globalization Capital, Inc. (NYSE MKT: IGC) announced the achievement of a milestone in the execution of its strategic plan. IGC has completed a test shipment of 300 tons of iron ore from Mongolia to China.  As previously reported, the Company established a shipping hub at the border of Mongolia and China to provide iron ore to its customers in China and source raw materials.

Ram Mukunda, CEO of IGC, said, "Importing from Mongolia has important strategic value.  Our beneficiation plants process low-grade ore into high-grade ore. It has been our plan to diversify the source of raw materials, from India and Mongolia, to include grades of ore that are of substantially better quality than our reserves.  This test delivery has been a big step for IGC in delivering on the opportunities before us."

Mr. Mukunda spoke of the comparative benefits of IGC's strategy for its anticipated Mongolian reserves. He continued, "On our mine sites in Inner Mongolia, we have reserves that are 2 or 3% Fe content, which is processed into 66% Fe ore using a dry magnetic separation process and a wet magnetic separation process. The 66% high-grade ore is then sold to steel mills. 70 truckloads of raw material are required to produce two truckloads of higher-grade iron using the dry separation process, and the two truckloads of higher-grade ore are subsequently processed through the wet separators to produce the end product of one truckload of 66% high-grade ore. This process is profitable at higher levels of iron ore pricing.  But both Mongolian and Indian ore have a base level of 40% to 50% Fe content, and in order to process these for use in steel mills, we employ just the wet separator and thus achieve considerable cost savings in producing the desired product.  To illustrate, 1.3 truckloads of this type of ore can be used to produce one truckload of 66% high-grade ore. Overall, this is higher margin production and is profitable even at lower sale prices."

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,672.60 -141.38 -0.79%
S&P 500 2,051.82 -11.33 -0.55%
NASDAQ 4,757.8790 +7.4820 0.16%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs