India Resources has signed a Letter of Intent (LOI) with Bankura DRI Mining Manufacturers Company to mine and supply coal from the Biharinath block in Raniganj Coalfield, West Bengal.
Bankura is a special purpose vehicle set up by six sponge iron manufacturers of the Bankura and Burdwan Districts to mine coal from the Anandapur Sector Biharinath block.
Under the LOI, Bankura and India Resources have agreed to mine and supply coal to Bankura at a rate per tonne of coal loaded onto Bankura’s trucks.
Under the agreed mine plan the company will deliver coal at an annual rate of 300,000 tonnes in the third year and ramping to 480,000 tonnes per annum in the seventh year of operation.
The Biharinath block lies about 120km north of India Resources’ Surda Copper Project. It is 10km south of Burnpur Steel City, across the Damodar River. The block is undeveloped and has been defined by 56 diamond drill holes for 27,000 metres of core. Good continuity is seen in the flat to very shallow dipping coal seams.
Meanwhile India Resources achieved record quarterly production of 838 tonnes of copper during the first quarter of 2010 at its Surda project. This represents an increase of 75 tonnes, or 10%, of copper compared to the previous quarter.
Ore milled was 4.3% higher than the previous quarter and feed grade increased to 0.88% copper compared to 0.85%.
A new management team at Surda has made significant progress in developing the lower side of the northern part of the mine which has the highest grade. Continued improvement in production coupled with ongoing cost optimization resulted in Surda achieving a net operating profit result during the quarter.
Production during the June quarter is expected to further improve as the contribution from higher grade area increases. In addition, increased hoisting tonnages are also forecast, due to upgrades in the winder and shaft being completed during the June quarter.
www.indiaresources.com.au

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