Gulf Oil secures Rs 300 Crores Mining Contracts

Gulf Oil Corporation Ltd on November 16, 2006, has announced that the Company has been awarded mining projects totalling Rs 300 Crores. The two companies which have awarded these projects to the Company are Singareni Collieries Ltd (value at Rs 110 crores) and Coal India Ltd (value at Rs 190 crores).

Singareni Collieries Ltd, in Andhra was the first to introduce outsourcing of mining services for their open cast mines. Coal India Ltd, has also decided to follow the off-loading model of Singareni Collienes and has commenced off-loading activities from one of its larger subsidiaries, Northern Coalfields Ltd (NCL) in Madhya Pradesh. In the latest order, with NCL, the Company has been able to get the largest single off-loading assignment in the country till date involving 300 lakhs cubic metres of over burden removal in the Dudhichua Coal Mines over 3 years. The work is planned to be started in early January, 2007.

Commenting on the performance of the Mining Contract Division over the last couple of years Mr S Pramanik, Managing Director said that "The Contracts Division is manned by Engineers who are trained in handling large mining projects and heavy equipment backed by Industrial Explosives expertise. This combination of knowledge of the mining technologies, geology and explosives has been an extremely successful mix for the fast growth of this Division’s business in a short period of time. Recently, this Division has also ventured into major infrastructure related projects and we are expecting large contacts in the infrastructure area".

With these two orders, the total order book of the company in mining stands increased to Rs 400 crores which are expected to be executed in the next 3 years. The Company’s Board has recently cleared an additional capital expenditure of Rs 75 crores for purchase of state of the art equipments and vehicles such as heavy duty earth moving tippers, excavators, graders and dozers.

Mr T T Das, Head of the Mining & Infrastructure Division advised that the Company has undertaken mining and infrastructure work since 2002 and has already executed projects valued at over Rs 205 crores. All projects have been completed within the scheduled time and customers as well as regulatory authorities have been satisfied with the quality of work executed. The project at Koyagudem was adjudged the "Best Mine" among all open cast coalmines in the Singareni Collieries by the Directorate General of Mine Safety (DGMS). Similarly in the iron ore mines operations in Orissa, the Division’s excellent Mine Planning, Design & Operation, of a major mine was acknowledged as the "Model Iron Ore Mine".

The Division was also associated with the prestigious infrastructure project of Delhi Metro under IMCC, a JV between Dywidag (Germany), L&T, Samsung (Korea), IRCON and Shimizu (Japan). It has successfully completed sinking of 22 nos. of 40 metres shafts in the crowded Kashmiri Gate area of New Delhi and also two tunnels of 3 kms length for the project 20 m below ground. Further infrastructure work is being undertaken.

Source : Equity Bulls

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