Looks to increase self-sufficiency in raw materials
MUMBAI: Rohit Ferro Tech Ltd, a Kolkata-based ferro alloy producer, is evaluating the acquisition of a large-sized chrome ore mine in Africa, a source close to the development said. With this, the company hopes to beef up its asset base in chrome and manganese ore to boost self-sufficiency in raw materials.
The source said, “Talks are at a preliminary stage and a final decision may take some time.” Recently, the company acquired a half-a-million-tonne chrome ore mine in Iran.
“Rohit Ferro does not have any mining asset currently. The company wants to acquire mines so it can meet its chrome and manganese ore requirement in-house,” the source added.
In FY09, the company plans to produce close to 1,20,000 tonne of ferro chrome, for which it would need about 3,12,000 tonne of chrome ore. The production of one tonne of ferro chrome requires 2.6 tonne of chrome ore.
Rohit Ferro is also scouting for mines in India to meet its manganese ore requirement.
“It is looking at an investment of over Rs 200 crore in Karnataka, where some prospective fields are available. But a lot depends on logistics,” said the source.
The company has two facilities in Orissa and West Bengal. It is looking at setting up a manufacturing facility wherever it gets a mine in south India as transporting manganese ore to the two existing units would be costlier, the source said. In FY09, Rohit Ferro’s manganese ore requirement has been projected at 58,000 tonne for manufacturing 18,000 tonne of ferro manganese and 12,000 tonne of silico manganese.
Earlier this year, it bought two mines in Indonesia, one for thermal coal and another for coking coal.
With these, the company hoped to meet not only its captive requirements but also the demand in the open market.
Rohit Ferro entered into a memorandum of understanding with PT Pacific Samudra Perkasa to acquire 60% interest in the two Indonesian mines through its wholly-owned subsidiary in Singapore.
The two mines are PT Palopo Indah Raya and PT Bara Prima Mandiri. While former has thermal coal reserves of 20 million tonne, the latter holds 5 million tonne of coking coal.
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