Surda Expansion Project

SURDA COPPER MINE EXPANSION AND EXTENSION PROJECTS

Two very important developments at Surda during the 2013 financial year will provide a long and sustainable future for the company.

  • Firstly, IRL signed a sub-contracting agreement with Indian company Shriram EPC Limited (SEPC) whereby IRL will conduct all of the shaft sinking and development work at the Surda mine. Work was started in April 2013 with preliminary work with regards to shaft sinking. So far 62 new staff have been recruited including Senior staff and one expatriate for execution of this project.
  • Secondly, the term of the 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.
 
Surda1a
   Surda shaft 3 and position of new shaft


Surda Expansion Project


Hindustan Copper Limited (HCL) has awarded the contract for the Stage II development of Surda Mine to Shriram EPC (SEPC) an Indian company. The Scope of the work included development work up to Level 18 from the current Level 10, and one new vertical shaft sinking of 600m depth. SEPC have now awarded this contract on back to back basis, to IRL Copper Mining Pvt. Ltd. (ICMPL), a fully owned subsidiary of India Resources Limited. SEPC remain responsible for key financing aspects of the project, including setting up and maintaining guarantees and the purchase of equipment. The order value to IRL of the work is $26.46 million.
The long section view below highlights the Surda II development project’s scale and on completion the shaft sinking together with the level development work will effectively double the underground openings at Surda.
Early in the 2014 financial year setup for the expansion work and 7metres of shaft sinking had been achieved, as well as preparation underground at the Surda mine for the required level development work. The expansion work is expected to be concluded by half way through 2017.

Surda2

   Long section of Surda workings

Surda3

   Shaft sinking head frame at Surda



The Surda Operations contract is expected to be extended to May 2017, an extension of nearly three years. This provides IRL with an order value of $56.7 million. This is great news because:

  • The operations are mature with reliable production, cash flows have a fixed revenue rate, and costs are well known.
  • Surda operations have been profitable at operations level in recent periods.
  • With synergies from the Surda expansion and the Rakha project, operations shall become more profitable.
Surda4
   Surda Shaft 3 headframe