monarch subsidiary make in copper

IRL to invest $20 mn to reopen Surda mine

11 Sep, 2007, 1700 hrs IST, PTI



JAMSHEDPUR: India Resources (IRL), a subsidiary of Australia-based Monarch Gold Mining Company, will invest about 20 million Australian dollar to reopen and operate the Surda Mine at Musaboni in East Singhbhum district.

IRL has an initial target to produce 4,500 tonnes of copper from the Surda Mine, which was a part of the Indian Copper Complex of Hindustan Copper Ltd (HCL), IRL Chief Operating Officer Arvind Misra said here on Tuesday.

Surda Mine was one of the six copper mines owned by the HCL that operated between 1928 to 2003, Misra said.

IRL's alliance with HCL was the first project in copper mining for an overseas group, he said, adding that IRL had chosen to work in India on account of its favourable geology and culture, recent rapid growth and relaxation of foreign investment in mining sector.

The company recognises that India did not have lack of resources but lag behind in underground mining technology and working methods, he said.

IRL, which is listed in the Australian Stock Exchange, has developed a close commercial alliance with HCL, a government enterprise and a sole integrated producer of primary copper in India, he said.

IRL other projects in the country include Aravalli project in Rajasthan and Bhandara diamond project in Orissa. Referring the Jharkhand project, Misra said refurbishing of Musabani concentrator has begun while production in Surda mine was expected to start in the first quarter of next year.

He said, IRL was expected to produce half a million ore to produce 4,500 tonnes of copper in concentrate to deliver at Maubhandar works of Indian copper complex. "We would double the production in next two years depending on the success of first phase of the work," Misra said.

Surda Mine still has about 450 metre of rich ore deposit, while IRL has the expertise for underground mining up to 1.5 km. Asked whether IRL has plan to take up other close copper mines for revival, Misra said his company was keen to work but it depended on the HCL's approval.

About the employment opportunity in the Surda mine, he said local people will be preferred in the skilled and unskilled posts whereas the official grade recruitments will be based on merit from across the country.