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Wednesday, 18 August 10
MADHUCON TO START MINING AT SUMATRA BLOCK IN 2-3 MONTHS


DNA India reported that, Hyderabad-based Madhucon Projects is set to begin mining at one of its coal blocks in Indonesia in 2-3 months, said S Vaikunthanathan, director of finance. The mine, located in south Sumatra, has reserves of 900 million tonne and is spread over 8,650 hectare.

“We have got all the legal clearances and have just begun construction of the jetty,” Vaikunthanathan said.

Though the company has so far acquired only 650-700 hectare, it will begin mining by November. “We will produce 4-5 lakh tonne this year and 1-1.5 million tonne next year,” he said. Madhucon has so far spent about Rs125 crore on the mine and will spend a total of Rs100-150 crore this fiscal.

The company bagged the greenfield block in 2008 for a concession period of 30 years and will pay 11.5% of revenues as royalty to the Indonesian government.

Madhucon has one other coal mine in Indonesia for which it is awaiting legal clearances.

“We will use some coal from the Sumatra block for our power project,” Vaikunthanathan said. The first phase of Madhucon’s 1,920mw project at Tamminapatnam in Andhra Pradesh will be commissioned in March.

“We have not yet estimated the reserves at the Jakarta mine and will begin mining there in three years,” he added. Madhucon had signed the memorandum of understanding (MoU) for the project last year.

Madhucon Projects had earlier this year transferred the two mines, the power project and its four toll roads to its subsidiary Madhucon Infra, which will be listed next year.

Of its four road projects, two are operational.

Source: DNA India



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