London-listed resources company Astra Resources has announced that it is negotiating the acquisition of up to three iron ore mines in the Keonjhar district of the Indian state of Orissa.
Three iron ore mines have been identified to meet Astra's mining criteria, with a total estimated potential reserve of 500 million mt of iron ore with iron content of over 63 percent.
Astra Resources stated that the mines have either mining licenses in place or will have them in place within 12 months, are open cut and close to logistics infrastructure such as roads and railways, facilitating supply to local and international markets.
The largest of the three mines, which has approximately 300-400 million mt of reserves, can be brought into operation within 12 months. The mine already has the equipment to start mining and is located near the national railway network.
According to Astra Resources, on the export front it is in detailed negotiations with Chinese buyers, with these discussions expected to be successful as the market for Indian iron ore is very strong due to the fact that it is cheaper and easier to transport.