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The out-of -court settlement with Perdaman Chemicals will allow Lanco Infratech Ltd to initiate efforts towards expansion of the Griffin coal mine project in Australia.
Nagaprasad Kandimalla, Chief Executive Officer, Business Development, said: “The looming lawsuit with so much at stake has now gone. This is a great relief for the company, various stakeholders, including banks.”
Speaking to Business Line over phone from Australia, he said, “The case was on for nearly 22 months. But the best part is it will now allow us to focus on the expansion of the Griffin mine project.”
The Griffin project is expected to produce 4.2 million tonnes this year. With the case sorted out, the company expects to take the project up for environmental clearances.
“The process takes about few weeks to about 2-3 months.
“Once this is completed, we will be able to pose the project and seek to achieve financial closure. To be developed on a debt-equity ratio of 35:65, the project will involve an outlay of $900 million to $1 billion,” he said.
“We expect to close finances by March next. Thereafter, within two years we will be able to hike the output to about 16-17 mt a year.
“Of this, about 10 mt will be for export and the rest consumed within Australia,” he explained.
The company may also induct partners for the project.
rishikumar.vundi@thehindu.co.in
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