Tuesday, December 18, 2007

Merrill Lynch buys 13% in mining co

Merrill Lynch International has picked up a 12.74% equity stake in mining firm Resurgere Mines & Minerals India for an undisclosed amount. Formerly known as Exfin Shipping (India), Resurgere has interests in extracting, processing and selling mineral products and also in exploration and development of mining assets.

In a bid to fund the purchase of plant and machinery to set up its extraction and crushing facilities at mines, it is in the process of tapping the capital markets. The company also plans to buy railway rakes to set up its logistics infrastructure facilities from the capital raised.

Resurgere currently operates in Kendujhargarh and Mayurbhanj districts of Orissa and has plans to start operations in Jharkhand’s Singhbhum district soon. It has entered into an arrangement with a leaseholder in a mining area in west Singhbhum district for mining iron ore and supplying the entire production.

All three mines carry high-quality iron ore of about 62-64% ferrous content. Resurgere sells most of its products domestically, except for iron ore fines, which it exports to China.

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