irl article - steele guru website

India Resources Limited announced that ongoing cost efficiencies and increases in copper production at the Surda Copper Mine in India have resulted in a significant milestone with the operation achieving an unaudited operating profit result, inclusive of amortization and depreciation charges in recent months.

As production ramps up, for the months of December 2009 and January 2010, Surda mine set several new production records. For the month of January, Surda Mine hoisted 36,973 tonnes and tramming for the same month was 39,404 tonnes which set new records.

For the month of January, the Surda Mine produced over 305 tonnes of metal in concentrate for delivery to Hindustan Copper Limiteds nearby smelter.

The increase in broken tonnage capacity was achieved by to efficiency improvements, will be further enhanced by the addition of new higher grade areas on the lower northern end of the mine. The impact of mining in higher grade areas and ongoing production efficiency improvements are expected enable the Surda Mine to achieve a targeted production level of 340 tonnes metal in concentrate per month.

The Surda Copper Project is owned by Hindustan Copper Limited and now operated by India Resources Limited in the state of Jharkhand. The mine is one of several older mines on the Singhbhum Copper Belt which have hundreds of years of mining history but were progressively abandoned due to low copper prices between 1998 and 2004.

IRL started refurbishing the mine and the concentrator plant at the abandoned Mosaboni site in July 2007. Production is now at record levels due to the efficiencies and techniques brought to the project by the Australian operators as well as the local experience and knowledge.

Cash flows from the Surda Mine and other proposed facilities available to IRL will contribute to the funding for the development of the Bankura coal project and other exploration projects.

Mtr Arvind Misra MD of IRL said that it is a significant step for IRL to grow the business in the 2010 year which began with the signing of a coal mine development Letter of Intent with Bankura DRI.