Indian state-run company MOIL Limited (formerly Manganese Ore India Limited) has signed an agreement with Gujarat Mineral Development Corporation (GMDC) to float a separate joint venture for exploration of manganese ore and subsequent downstream value-added projects in the western Indian state of Gujarat, MOIL said in a statement issued on Tuesday, October 8.
According to the statement, the agreement signed between MOIL and GMDC, the mining arm of the Gujarat government, envisages the setting up of a joint venture (JV) company, in which MOIL will hold 51 percent of equity and GMDC 49 percent, to undertake manganese ore exploration in the western Indian state.
Subsequent to the positive results of such exploration and the discovery of feasible recoverable minerals, the joint venture will also consider setting up value-added downstream units to be located in Gujarat, the statement said.
The joint venture has earmarked an initial investment of $35 million.
MOIL currently holds 34 percent of total Indian reserves of manganese ore and accounts for around 50 percent of total domestic production of the mineral.