Corporate Overview

India is a land of opportunity. For many years since gaining Independence in 1947 India has had very limited direct foreign investment. Not until policies changed in the late 1990’s has India allowed direct foreign investment and ownership of mineral licenses by foreign companies. The change in polices has resulted in rapid and extensive economic growth and great investment opportunities for mining and exploration companies. India Resources Limited (IRL) is there taking advantage of opportunities in contract mining, mineral exploration and mining in its own right.

One key issue that has historically plagued the Indian resources sector is that its mining methods are old fashion and often lack modern technology and expertise resulting in a high cost base for mining operations in comparison to countries such as Australia. This together with the need for strong exploration knowhow provides an opportunity to combine Australian mining and exploration skills with India’s vast mineralisation potential.

Since the beginning, the Company has maintained a close commercial alliance with Hindustan Copper Limited (HCL), (a Government of India enterprise) in the following ways:

The Company has developed a close commercial alliance with Hindustan Copper Limited (HCL, a Government of India enterprise) in the following ways:

  • IRL operates HCL’s Surda mine producing copper ore which IRL processes at the Mosabani concentrator plant in Jharkhand to produce copper metal in concentrate which it sells to HCL.

  • IRL’s term of works order for the Surda copper mine contract is expected to be extended to May 2017 as recommended by a committee of HCL and IRL executives. This extension will give sufficient time to payback development and setup costs at the mine and IRL have been cash positive with operating costs since 2010. 
  • IRL has been awarded the Surda II Development contract as a sub-contractor of Shriram EPC Limited (SEPC). Shaft sinking is part of the task with 7m of the new shaft completed out of total of 600m of depth. Also level development from the Surda workings to the new shaft and vice versa is underway and so far 250 m have been completed out of the contract of 18,000m. The contract is of 3 years duration.

  • A very exciting time for the company occurred when the IRL-KOPEX consortium won the bid for the Rakha Redevelopment work from HCL. This is a 5 year contract and involves shaft sinking, decline development and refurbishment of old workings. All the work has great synergies and the locations are in close proximity to each other and IRL has a well trained work force and infrastructure in place and is looking forward to this opportunity.

  • IRL is conducting exploration for base metals in the area along the copper belt from Mosabani to Rakha. Already a Mining License (ML) application has been made for the old mine site of Badiya. Negotiations with HCL on the matter occurred to prevent the two companies from working against each other on the matter. IRL will conduct exploration and it is hoped will ultimately develop the copper tenement along with others.

  • IRL continues to bid for and engage in discussions with HCL to develop HCL copper projects in Jharkhand.

HCL is the sole integrated producer of primary copper in India and is listed on the Mumbai, Delhi, Calcutta and Madras stock exchanges. It mines ore, concentrates, smelts and has further refining plants to produce copper metal products at the Khetri Copper Complex in Rajasthan, the Malanjkhand Copper Project in Madhya Pradesh, the Taloja Copper Project in Maharashtra and its Indian Copper Complex in Jharkhand of which Surda is a part.

This commercial partnership with HCL is a first for an overseas group and is indicative of the Indian resource sector’s willingness to embrace Australian exploration and mining expertise.

The Company’s portfolio of exploration assets comprises:
Aravalli Project – From two Reconnaissance Permits (RPs) in Rajasthan (north western India) has evolved IRL’s Aravalli Project. During the RP tenure exploration was carried in the Aravalli proterozoic metamorphic belt, prospective for copper, lead, zinc and gold. Now IRL has made an ML application and has the preferential right to be granted the ML for this sedex style lead-zinc mineralisation. Also copper was found at Sathuddia and a Prospecting License (PL) application has been made and recently an RP application is being finalised for the Hindoli prospect. 

Coal / Iron Ore – As has happened in China, India’s rapidly growing economy is driving a surge in demand for power and steel. IRL is currently seeking suitable projects for rights to explore and develop coal or iron ore in India.

Diamond Projects – The Company through a joint venture with “Vajra” an Indian Private company explores for diamond’s and focuses on renewal of two PL’s of the Dharwar Project in Andhra Pradesh before bulk sampling of two identified diamondiferous kimberlite pipes takes place. In addition the Bhandara Diamond Project currently consists of a PL application over highly prospective ground in proximity to known kimberlite fields in Orissa state,

Askot Project IRL has a strategic holding of about 9.8% of the share capital of Pebble Creek Mining Ltd. (TSX-V – PEB), a Canadian company listed on the Toronto Venture Exchange. Pebble Creek’s main asset is the Askot Project, a VMS deposit of copper, lead, zinc, gold and silver mineralisation in northern India. This is in the stages of being granted a Mining License (ML) over the mineralisation and IRL are waiting for developments from Pebble Creek which has been restructured and is in need of further funding.