Lanco Infratech Ltd expects its resources arm in Australia to break even by early next year as it completes expansion of Griffin coal mine project from 3.1 million tonnes a year to 5 mt a year.
“Thereafter, we will take up expansion of the mining project from 5 mt to 15 mt after we secure various clearances from the local authorities. Already, significant progress has been made in the project in terms of clearances for mine and related infrastructure,” said L. Madhusudhan Rao, Chairman.
“Some of the legal hurdles we faced in the past are now behind us and once we get necessary clearances, we will be able to take up the next phase of expansion.
“With the completion of phase one expansion to 5 mt by early 2014, we will be able to break even,” he said.
Maha tamil project
Speaking on the sidelines of the company’s AGM here, he told Business Line the company is open to stake divestment to rope in a strategic partner for the project.
Referring to its natural resources division, he said that significant progress has been made in the Maha Tamil project in Chhatisgarh.
In this project, Lanco is hoping to produce 20 million tonnes a year coal and a 2,000 MW. Potential sites for the power plant have been identified and technical assessment is in process, he said.
Earlier this year, the company was chosen by Steel Authority of India as a developer for the Tesra Opencast coal mine project and development of associated captive power project.
Coal washery
The project involves setting up a coal washery and operation of associated power plant of 200-300 MW on the secondary products arising from the proposed Tesra washery.
On roping in a strategic investor in Griffin and Maha Tamil project, Madhusudhan Rao said the company was open to the idea but this will take time.
The company had enlisted the services of an Australian consultancy to facilitate the process.
rishikumar.vundi@thehindu.co.in