Indian Globalization Capital Wins Chinese Iron Ore Contract Valued at $1.8 Millionadmin
India Globalization Capital, Inc., a company competing in the rapidly growing materials and infrastructure industry in India, today announced it was awarded an iron ore supply contract worth $1.8 million. The third in a recent series of contracts with Chinese companies, the order totals 40,000 metric tons (mT) of iron ore.
“This third order will ship out of the port in Goa on the west coast of India,” said Ram Mukunda, Chief Executive Officer of India Globalization Capital. “We are making rapid progress with our plans to operate out of our second shipping hub on the west coast at Goa. On the east coast of India we operate out of the Krishnapatnam port. We are excited and on plan about creating an ability to ship from both coasts of India as this will open up markets other than China.”
Mr. Mukunda continued: “With a hat-trick of Chinese iron ore contracts totaling $6.5 million booked, we believe we are meeting our strategic goals and expect the tactical execution of potential operations within our materials business segment to drive long-term contracts and profitability. We have never been better positioned to take advantage of the growth in the materials marketplace in India and China, and we expect that our materials segment will sustain meaningful contributions to the company’s operations and bottom line.”
Iron ore’s importance cannot be overstated. Iron ore, the main ingredient in steel used for construction, bridges and ships, is the most widely used of all metals, comprising 95% of the metal tonnage produced worldwide. In 2008, the market for iron ore totaled nearly $80 billion; and global use of finished-steel products has increased markedly since 2005, especially in countries with expanding infrastructure, like China, where steel demand has risen by more than 13% in recent years. China is the largest importer of iron ore, importing roughly half of the world’s supply annually.