Kolkata-based Saraf Group with key interests in retail, real estate and entertainment is keen on reviving a lapsed mining agreement with the Industrial Development Corporation of Orissa Ltd (IDCOL).
As the Group commits investments in the future for its titanium project at Chhatrapur, in south Odisha, it is looking at raw material security to feed all its projects. The titanium park has been developed over 260 acres land to establish various industrial units for manufacturing different titanium products.
In the first phase, the company has already constructed a 36,000 MT per annum capacity high titanium slag plant with 20,000 MT per annum of high purity pig iron. The project was inaugurated by chief minister Naveen Patnaik on November 30 last year.
In the second phase, the company intends to invest INR 1,000 crore on a 30,000 MT per annum titanium dioxide pigment plant along with a scandium oxide plant. Scandium oxide would be recovered from waste sulphuric acid. Simultaneously, a ferro titanium plant with a capacity of 5,000 MT per annum will also be established. Moreover, a captive plant of 15 Mw is being put up to supply electricity to the titanium slag plant which will reduce the electricity cost by INR 2 per unit.
But, the company is finding it tough to tie up funding for these projects due to the lack of a captive mining source and its complete dependence on raw material supplies by a single source.
“Our bankers are very hesitant to finance these projects because we are totally dependent on only one source- Indian Rare Earths Ltd (IREL) for supply of our raw material- Ilmenite mineral. To strengthen the base of all our plants, a captive source of mineral mines is essential”, said S M Shroff, chairman of Saraf Agencies Pvt Ltd in a letter to chief minister Naveen Patnaik.
Earlier, Saraf Group had entered into an agreement with IDCOL to form a JV for mining of beach sand minerals in north Ganjam area and also set up a mineral separation plant. Prospecting for the mines was done by an Australia-based company. As per the agreed terms, Saraf Group would hold 74 per cent equity in the JV while 26 per cent shares would be owned by IDCOL. However, the agreement lapsed and the proposed JV failed to materialise.
Now, Saraf Group is keen to either revive the lapsed pact or have a fresh agreement and has requested the Odisha government to grant mining lease in favour of IDCOL.
Saraf Group is keen to operate the mines granted to IDCOL and set up a mineral separation plant with a capacity of 0.4 MnT per annum.
It may be noted that under the new mining rules, grant of mining lease for beach sand minerals depends on the monazite ratio in the beach sands. If the monazite ratio is less than 0.7 per cent, the lease can be granted to private parties by auction. If the monazite ratio exceeds 0.7 per cent, the lease can be granted only to a state undertaking. Beach sand deposits in Odisha’s Ganjam area contain monazite content of more than 1.26 per cent, according to a survey report by the Atomic Minerals Directorate for Exploration & Research (AMD) and this makes only the government owned entities eligible for bagging a mining lease.
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