Bankura DRI Mining Manufacturers Company is likely to award a long-term contract for developing and operating an underground captive coal mine at Biharinath block in Ranigunj coalfield in West Bengal to Australia based India Resources.
As per the recent agreement, Bankura granted IRL Coal, an IRL subsidiary, the exclusive rights for four months to finalise the techno-commercial terms for mine development and operation. Once the terms are finalised, IRL Coal is expected to be appointed as sole contractor to develop the captive mine. The mining involves developing two declines of two km each, sink two shafts of 170 mtrs and 490 mtrs depth. According to the approved mine plan, the first delivery of coal i.e 30,000 tpa of coal is expected in the third year of operations. Production is targeted to reach 4.8 lakh tonne in the seventh year.
IRL is likely to fund the proposed project through a combination of money raised from its share purchase plan, debt with Indian banks and a capital contribution from Bankura.
Bankura DRI is an SPV created by Concast Bengal Industries, Amiya Steel, Govinda Impex, Bishan Dayal Goyal & Sons, Divya Jyoti Sponge Iron and Bhagwati Sponge.
Source : ProjectsToday
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