Bethesda, MD, Dec. 5, 2013 (GLOBE NEWSWIRE) -- India Globalization Capital, Inc. (NYSE MKT:IGC), a company competing in the rapidly growing materials and infrastructure industry in India and China, announced that it has commenced wet processing operations to produce high-grade iron ore at the first of its three plants in Inner Mongolia. As previously reported, the Company started dry processing operations at this plant in early October. Since that time, IGC has been building a supply of lower grade 8% ore in preparation of wet processing operations that refines the ore to a final grade between 64% and 66% Fe. Upon completion of the wet processing, the high-grade ore is sold to steel factories in China.
The plant is located on an internally estimated reserve of 2 million tons, worth over $200M at current prices. The Company has outsourced the mining and the dry processing functions to a local firm that specializes in mining, dry processing and logistics. IGC's subsidiary in China is responsible for the subsequent wet processing and the sale of high-grade iron ore on the spot market. The demand for iron ore continues to be strong with local prices in the $110-$115 per ton range for high-grade ore.
Based in Bethesda, Maryland, India Globalization Capital, Inc. (IGC) is a materials and infrastructure company operating in India and China. In India we mainly engage in supplying and trading iron ore and in leasing construction equipment. In Inner Mongolia we own and operate iron ore beneficiation plants and iron ore mines. For a short video showing the beneficiation process please visit us at http://www.indiaglobalcap.com/presentation.php.
Some of the statements contained in this press release that are not historical facts constitute forward- looking statements under the federal securities laws. Forward-looking statements can be identified by the use of the words "may," "will," "should," "could," "expects," "post", "plans," "anticipates," "believes," "estimates," "predicts," "intends," "potential," "proposed," "confident" or "continue" or the negative of those terms. These statements are not a guarantee of future developments and are subject to risks, uncertainties and other factors, some of which are beyond IGC's control and are difficult to predict. Consequently, actual results may differ materially from information contained in the forward-looking statements as a result of future changes or developments in our business, our competitive environment, infrastructure demands, Iron ore availability and governmental, regulatory, political, economic, legal and social conditions in China and India.
The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise. Other factors and risks that could cause or contribute to actual results differing materially from such forward-looking statements have been discussed in greater detail in IGC's Schedule 14A, Form 10-Q for fiscal quarters ended September 30, 2012 and December 31, 2012 and Form 10-K for fiscal year ended March 31, 2013, filed with the Securities and Exchange Commission on December 9, 2011, November 14, 2012, February 13, 2013 and July 16, 2013, respectively.
Claudia Grimaldi 301-983-0998
India Globalization Capital
Bethesda, Maryland, UNITED STATES
Claudia Grimaldi 301-983-0998
Day's Range: 0.79-0.85
Previous Close: 0.82
Market Cap: 6.30M
Day's Volume: 33,196