Bethesda, June 11, 2013 (GLOBE NEWSWIRE) -- India Globalization Capital, Inc. (NYSE MKT: IGC) announced theachievement of a milestone in the execution of its strategic plan.IGC has completed a test shipment of 300 tons of iron ore fromMongolia to China. As previously reported, the Companyestablished a shipping hub at the border of Mongolia and China toprovide iron ore to its customers in China and source rawmaterials. Ram Mukunda, CEO of IGC, said, "Importing from Mongolia hasimportant strategic value. Our beneficiation plants processlow-grade ore into high-grade ore. It has been our plan todiversify the source of raw materials, from India and Mongolia, toinclude grades of ore that are of substantially better quality thanour reserves. This test delivery has been a big step for IGCin delivering on the opportunities before us." Mr. Mukunda spoke of the comparative benefits of IGC's strategyfor its anticipated Mongolian reserves. He continued, "On our minesites in Inner Mongolia, we have reserves that are 2 or 3% Fecontent, which is processed into 66% Fe ore using a dry magneticseparation process and a wet magnetic separation process. The 66%high-grade ore is then sold to steel mills. 70 truckloads of rawmaterial are required to produce two truckloads of higher-gradeiron using the dry separation process, and the two truckloads ofhigher-grade ore are subsequently processed through the wetseparators to produce the end product of one truckload of 66%high-grade ore. This process is profitable at higher levels of ironore pricing. But both Mongolian and Indian ore have a baselevel of 40% to 50% Fe content, and in order to process these foruse in steel mills, we employ just the wet separator and thusachieve considerable cost savings in producing the desired product. To illustrate, 1.3 truckloads of this type of ore can be usedto produce one truckload of 66% high-grade ore. Overall, this ishigher margin production and is profitable even at lower saleprices."
Mr. Mukunda concluded, "We are pleased to havesuccessfully established the logistics and supply chain ofimporting from Mongolia. We expect to finalize purchase andsale agreements in the very near future. Further, with ironore prices currently depressed, we are diligently working onfinalizing our acquisition strategy that can potentially addsignificant iron ore assets to our portfolio at a discounted costin anticipation of a projected global rebound."About IGC: Based in Bethesda, Maryland, India Globalization Capital, Inc.(IGC) is a materials and infrastructure company operating in Indiaand China. We currently supply iron ore to steel companiesoperating in China. For more information about IGC, please visitIGC's Web site at www.indiaglobalcap.com. For informationabout Ironman, please visit www.hfironman.net. Forward-looking Statements: Some of the statements contained in this press release that arenot historical facts constitute forward-looking statements underthe federal securities laws. Forward-looking statements can beidentified 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. Thesestatements are not a guarantee of future developments and aresubject to risks, uncertainties and other factors, some of whichare beyond IGC's control and are difficult to predict.Consequently, actual results may differ materially from informationcontained in the forward-looking statements as a result of futurechanges or developments in our business, our competitiveenvironment, infrastructure demands, Iron ore availability andgovernmental, regulatory, political, economic, legal and socialconditions in China and India. The Company undertakes no obligation to publicly update anyforward-looking statements, whether as a result of new information,future events, or otherwise. Other factors and risks that couldcause or contribute to actual results differing materially fromsuch forward-looking statements have been discussed in greaterdetail in IGC's Schedule 14A, Form 10-K for FYE 2012, Form 10-Q forthe quarter ended September 30, 2012 and Form 10-Q for the quarterended December 31, 2012 filed with the Securities and ExchangeCommission on December 9, 2011, July 16, 2012, November 14, 2012,and February 13, 2013 respectively.
CONTACT: Investors Contact Information Claudia Grimaldi 301-983-0998