GMDC mulls value addition with pvt tie-ups

To start with one for bauxite in Kutch.

State-run Gujarat Mineral Development Corporation (GMDC) is looking to add value to its mineral products with private partnerships. It sells raw bauxite and plans to set up a project for value addition in bauxite products at Kutch.

There is a huge market for value added mineral products and we are looking to tap this opportunity. There are three projects being planned for value addition, but initially we will take up the value addition for bauxite. So far, we have been selling raw bauxite but the value addition will help us increase the value of the mineral by about six-seven times. However, the revenue targets from the project would only be known once the draft project report (DPR) is prepared," said V S Gadhvi, managing director.

The company has identified private partners and is now preparing a DPR for the project. “We prefer partners from within the state and so far, we have already identified a few. The basic documentation, including shareholders' agreement, financial assessment of the partners and fuel supply agreement are over," Gadhvi informed.

GMDC registered a 124 per cent growth in production of bauxite over the past year. "We have seen an unprecedented growth in bauxite mining. It had remained below 200,000 tonnes for several years, but jumped to 700,000 tonnes in 2010-11. In the current year, we are looking to focus on our core competence of mining and will increase the output by about 10-15 per cent in bauxite, as well as in lignite," he added.