India Resources signs A$500 million deal to mine coal in West Bengal
27 Jan 2010
Australian miner India Resources Ltd (IRL) has signed a A$500-million (Rs2,082 crore) long-term deal with Bankura DRI Mining Manufacturers Company to develop and operate the Biharinath Coal Mine in Raniganj, West Bengal.
IRL will invest over Rs100 crore in the project.
Bankura is a special purpose vehicle (SPV) set up by six sponge iron manufacturers of the Bankura and Burdwan Districts to mine coal from the Anandapur Sector of the Biharinath coal block in Raniganj Coalfield, located in West Bengal.
Bankura has been allotted the Biharinath coal block in the Raniganj coal belt that lies approximately 120km north north-east of IRL's existing Surda Copper Project in West Bengal having total coal reserves of 95 million tonnes.
Under a 30-year contract worth Rs2,082 croremillion, the Western Perth-based IRL signed a letter of intent (LOI) with Bankura on Monday, to undertake contract mining to deliver 30,000 tonnes of coal per annum in the third year and 480,000 tonnes per annum in the seventh year of operation.
IRL will invest Rs100 crore in the project, and Bankura will advance it (Rs5 crore) to start final design and initial mobilisation work.