The Agarwals of Adhunik Group are planning to raise close to
Rs1,000 crore of equity capital through an initial public offering (IPO) of
shares in the group’s merchant mining arm Orissa Manganese & Minerals Ltd
and equity dilution in unlisted power arm Adhunik Power and Natural Resources
Ltd as well as listed entity Adhunik Metaliks Ltd, according to sources in the
know.
It has six manganese ore mines in Orissa and one iron ore
mine in Jharkhand. Since there is no captive clause on the mines, the ore can
be sold in the open market. Ghatkuri iron ore mine in Jharkhand and Patmunda
manganese ore mine in Orissa are presently its largest mineral reserves and the
bulk of ore production happens at these mines. Iron ore reserves at Ghatkuri
have been estimated at 97.21 million tonne (mt) and manganese ore reserves at
Patmunda at 53.30 mt. The 1.2 million tonne per annum (mtpa) pellet and
beneficiation plant in Jharkhand was set up a year back.
These apart, Orissa Manganese
has economic interest in Suleipat iron ore mine, which has reserves of 40 mt,
and started operations in September.
The Suleipat mining company,
in which Orissa Manganese earlier had a 100% stake, has now been handed over to
a 50% joint venture with the lessee of the mine for raising production from the
presently approved 0.6 mtpa to 3 mtpa. But the mining right is yet to be to
renewed and transferred to the new joint venture, Neepaz B C Dagara Steels Pvt
Ltd.
Apart from raising output from
its mines, Orissa Manganese also plans to set up a second pellet plant of 1.6
mtpa capacity utilising low-grade iron ore fines for conversion.
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