On January 25, Perth, Australia-based mining company India Resources Limited (IRL) announced that it has signed a letter of intent (LOI) for a 30-year contract worth AU$500 million (US$452.38 million) to develop and operate the Biharinath coal mine, located in the northeastern Indian state of West Bengal, with Bankura DRI Mining Manufacturers Company Private Limited (Bankura).
Bankura is a special purpose vehicle set up by six sponge iron manufacturers of the Bankura and Burdwan districts to mine coal from the Anandapur Sector Biharinath block in the Raniganj coalfield in West Bengal.
Under the letter of intent signed between IRL and Bankura, India Resources Limited will supply coal at a rate per metric ton loaded on to Bankura's trucks.
As per the agreed plan, IRL is to deliver coal at a rate of 30,000 metric tons a year in the third year, ramping up to 480,000 metric tons per annum in the seventh year of operation. Bankura will advance IRL AU$1.2 million (US$1.09 million) to commence final design and initial mobilization work, and IRL will have six months to establish funding for the infrastructure program.