Date:30/05/2008 URL: http://www.thehindubusinessline.com/2008/05/30/stories/2008053050701200.htm

Aditya Birla Minerals scouring for copper assets

M.R. Subramani

Recently in Perth Aditya Birla Minerals Ltd, in which Hindalco holds 51 per cent stake, is looking for new mines and opportunities across the globe, including Africa and South America.

“Copper assets are difficult to find and buy. We hope to witness some success soon. We are looking world-wide, including Africa, and we have identified huge potential in South America,” said Mr Richard Holmes, Group Manager, Geology and Business Development of Aditya Birla Minerals.

The firm, listed on the Australian Stock Exchange in 2006 and headquartered in Perth, began operations here in 2002. Currently, it operates an underground mine at Nifty in Western Australia and another at Mt Gordon in Queensland.

The firm produces 75,000-80,000 tonnes of copper concentrate a year and the entire quantity is shipped to Hindalco’s smelter in Dahej, Gujarat.

Scouring for resources

The Dahej plant, the biggest single site smelter in the world, has a capacity to produce 5 lakh tonnes of copper. The shipments from here only meet part of its requirements. “Twenty per cent of the Dahej plant’s requirements are from captive resources, while nearly two million tonnes of concentrate are imported every year. These concentrate yield 20-30 per cent copper,” he said.

“We want to reduce our dependence on outside resources and that’s why we are scouring for resources. Globally, there is shortage of copper concentrate,” Mr Holmes said.

Speaking on expansion plans to a group of journalists on a trip sponsored by Australian Department of Foreign Affairs and Trade, Mr Holmes said the company was exploring mines around the Nifty area. “We are planning an investment of $75 million in expansion and exploration,” he said.

“We are also expanding in Mt Gordon and increasing production to 40,000 tonnes. We expect to achieve this in the next two to three years,” Mr Holmes said.

Keeping focus

Currently, Aditya Birla Minerals produces 60,000 tonnes of copper at the Nifty mines and 25,000 tonnes at Mt Gordon.

Stating that there was no dilution of its focus, Mr Holmes said China was a very aggressive competitor for copper in the global market. “It is also making things hard for mineral resources firms by competing for projects with active support of its government,” he said.

On Thursday, Aditya Birla Minerals closed unchanged on the Australian Stock Exchange at A$2.810 a share. Hindalco, on the other hand, ended two per cent lower at Rs 192.50 on the National Stock Exchange.