India Markets open in 9 hrs 15 mins

MOIL signs pact with GMDC for new joint venture company

Mumbai (Maharashtra) [India], Oct 1 (ANI): MOIL Ltd, the country's largest producer of manganese ore, on Tuesday signed a detailed memorandum of understanding with Gujarat Mineral Development Corporation (GMDC) to take up joint exploration of manganese bearing areas in the western state.

Both state-owned companies will form a new joint venture company in which MOIL will hold 51 per cent take and GMDC the remaining 49 per cent. They will also conduct mining operations as well as to set up a value addition plant in Gujarat.

Besides, MOIL and GMDC have signed a MoU with Mineral Exploration Corporation Ltd (MECL) for exploration related activities to be carried out in the manganese mineral acreage to establish resources and reserves.

"Based on results of exploration and feasibility of mining ascertained after exploration activities, a decision will be taken to go ahead with mine development, mining activities and establishment of downstream derivative plants with an expected investment of Rs 250 crore," MOIL said in a statement.

MOIL currently holds about 34 per cent of India's manganese ore reserves and contributes nearly 50 per cent of the domestic production. It is giving thrust on expansion and modernisation of its mines to sustain production levels and enhance capacity.

(ANI)