India Resources in iron ore talks http://www.miningnews.net/storyview.asp?storyid=193432§ionsource=s0
Greg Tubby Wednesday, 5 March 2008
MICHAEL Kiernan’s India Resources is running its ruler over an iron ore property in India with a view to entering into a similar “dig and deliver” arrangement to the one it has with Hindustan Copper.
Kiernan refused to comment further after presenting at PDAC in Toronto, but said the company was also talking with another potential Indian partner about an unrelated property.
India Resources operates the Surda copper mine under contract with government-owned Hindustan Copper.
Kiernan is coy about the terms of the arrangement with Hindustan, referring to it as “secret men’s business”.
“There is an agreed price between IRL and Hindustan that allows IRL a reasonable return on equity for the $8-10 million we have spent refurbishing the Surda mine plus a profit,” Kiernan said.
He said India Resources was leveraged to the copper price, but refused to reveal further details of the arrangement.
Kiernan is characteristically bullish about India, saying the geology is similar to South Africa and Western Australia. However, he says the Indian industry is still under-developed with plenty of opportunities for a foreign company that can supply expertise and capital.
India Resources’ business model is to explore and operate mines in India but not to seek to control the tenements, a strategy Kiernan is confident will enable the company to avoid some of the bureaucratic difficulties faced by some other foreign companies in India.
Shares in the company were last trading at 15c, unchanged since the start of the week.
IRL Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
