MOIL signs MoU with GMDC for JV in manganese mining

MOIL Ltd. has signed a detailed Memorandum of Understanding (MoU) with Gujarat Mineral Development Corporation Ltd. (GMDC) to set up a joint venture (JV) in Gujarat. The JV will take up exploration of manganese bearing areas, exploring its feasibility and conduct mining operations, as well as set up a value-addition plant.

MOIL is a Schedule-A, Miniratna Category-I Central Public Sector Enterprise (CPSE), under the administrative control of the Ministry of Steel, Government of India, while GMDC is an undertaking of the Government of Gujarat.

The two entities had signed a preliminary MoU in January 2019, and has have now signed a detailed MoU to take up the above project. The JV will have shareholding pattern of 51% and 49% for MOIL and GMDC respectively.

In this connection, MOIL and GMDC have also signed MoU with Mineral Exploration Corporation Ltd. (MECL), a Miniratna Category-I CPSE under the Ministry of Mines, Government of India, for exploration related activities to be carried out in the manganese mineral acreage to establish resources/reserves.

Based on results of the exploration and feasibility of mining ascertained after exploration activities, a decision to go ahead with mine development, mining activities and establishment of downstream derivative plants with an expected investment of about Rs. 250-crore shall be taken.