India Globalization Capital Provides Update on Its Iron Ore Business

- May 23rd, 2011

India Globalization Capital, Inc. (NYSE:IGC), a company competing in the rapidly growing materials and infrastructure industry in India, reports on its iron ore business.

India Globalization Capital, Inc. (NYSE:IGC), a company competing in the rapidly growing materials and infrastructure industry in India, reports on its iron ore business.

The press release is quoted as saying,

In July 2010 the Government of Karnataka stopped issuing permits for the transportation of iron ore from mines in Karnataka. This action was taken to curb illegal mining and put in place processes to better monitor the movement of iron ore. It effectively shut down ore mining in the state. Subsequently, the mine owners’ lobby went to court to have the mines reopened. Upon hearing the case the court ordered that processes to monitor mining and transportation of ore be put in place by April 20, 2011, effectively reopening mining and transportation. However, the State of Karnataka was unable to put in place all the processes by the stipulated date and as a consequence has not reopened mining in the state. Currently, the Government is in the process of inspecting mines in Karnataka and in conversations with officials they expect to complete the inspection in June. If in fact, they complete inspecting the mines, movement of ore for domestic consumption could begin in July with exports opening shortly thereafter.

For the complete press release, click here.

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