PVG Group to tie up with Mumbai co for iron ore export

Bangalore, June 6: Belgaum-based PVG group, engaged in providing logistics support with a fleet of 3,000 vehicles, is entering into a tie-up with a Mumbai-based company for iron ore mining, exports and chartering of ships.

Talking to UNI here, Company Chairman and Managing Director Prasanna V Ghotage said the alliance was likely to lead the group's turnover to over Rs 5,000 crore by 2010. The group would float a new company through the tie-up and had plans to go public to expand its mining activities and invest funds on purchasing railway rakes. The company owned two rakes of 58 bogies each under the Wagon Investment Scheme of the Indian Railways to transport its ore, he added.

He said the group was exporting two million tonnes of iron ore to China and was likely to increase it to three million tonnes next year. China was the biggest buyer and would continue to be so for the next one decade at least, keeping in view the massive infrastructural projects being implemented there, he explained.

China's requirement was 325 million tonnes and Karnataka had been supplying around 100 million tonnes, he added.

Mr Ghotage said vessels would be chartered to transport iron ore to China and coal would be imported on return journey from Australia. A mechanical ore handling plant, which could handle around 3,000 tonnes per hour, would be set up in Vizag port to make loading and unloading easier.

Mr Ghotage said the company would buy eight more rakes from the Railways for Rs 18 crore each. This step, along with vessel chartering, would help the company chalk out its strategy for the specific quantity of ore to be exported. The objective was to have an iron ore loaded vessel moving towards China every fourth day. He said over 22 million tonnes of iron ore moved to China from the Bellary iron ore belt through Chennai or Vizag ports. If the railway track between Hassan and Mangalore, awaiting commencement of traffic, was thrown open to service, the quantity of iron ore exported could be stepped up considerably, he felt.

He said the company, started to provide logistics support for the movement of raw materials like iron ore, had also ventured into handling and transportation of high value products like pig iron and low ash metallurgical coke. The company owned mines in Goa, Hospet and Tinaighat. It was awaiting clearance from the Karnataka Government for lease of iron ore mines in Bellary district.

UNI