Bethesda, July 8, 2013 (GLOBE NEWSWIRE) -- India Globalization Capital, Inc. (NYSE MKT:IGC) announced the signing of an iron ore sale and purchaseagreement with Mon Resources International LLC on July3 rd, 2013. Mon Resources supplies iron ore produced inMongolia. The contract encompasses an aggregate shipment of up to126,000 metric tons of iron ore, and is effective through December31, 2013, and can be extended via mutual agreement. IGC will purchase an aggregate of 126,000 metrictons of 54% Fe content ore delivered to the IGC hub at the borderof Mongolia and China. IGC's subsidiary in China will thenbeneficiate this ore to 66% Fe content, which is then sold to thesteel mills. The shipments are expected to commence in August withprojected aggregate revenue between $10 million and $12 million,based on current pricing, and favorable profit margins. Ram Mukunda, CEO of IGC, remarked, "This orderstems from the successful 300 MT test shipment and theestablishment of a shipping hub at the border of Mongolia andChina, both of which were announced in the past months. This oreserves as the raw material for the beneficiation plants that canprocess it into 66% plus ore that is then sold to steel mills inChina. As the ore already has 54% Ferrous (Fe) content,processing it to a higher grade creates greater efficiencies and alower cost basis and as a result higher margins. Even based ontoday's relatively low pricing environment for iron ore, we expectthis transaction to result in meaningful incrementalprofitability. As pricing firms up later in the year as manyanticipate, we expect to generate potentially significantprofitability." Mukunda added, "We are excited about ourrelationship in Mongolia. This establishes our network in Mongolia,where we are one of the first U.S. companies, and where we seeconsiderable 'first-mover' acquisition opportunities. Our plan isto consolidate iron ore mines and beneficiation plants in the InnerMongolia and Mongolian region, emerging as a leading provider ofiron ore to the steel industry. The iron ore mining industry ishighly fragmented in that area and as the first U.S. public companyin this extremely mineral rich area, we have a large and excitingentrepreneurial opportunity to create significant value for ourshareholders."
Mr. Mukunda cited the results of the recentpresidential election in Mongolia as further encouragement forbuilding IGC's portfolio there. The newly elected president'splatform is focused on integrating Mongolia into the globaleconomy. He has sought to use Mongolia's vast mineral wealth tobring foreign investment into the country while also ensuring thatMongolians profit from it as well. It was under him that theMongolian government amended its Foreign Investment Law toencourage private companies such as IGC to invest there. Companiessuch as IGC no longer need Cabinet or Parliamentary approval beforeacquiring equity in companies based in Mongolia.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: Contact: Investors Contact Information Claudia Grimaldi 301-983-0998