Technology

Essel Mining puts in the highest bid of Rs 450 crore for Pro Minerals

Essel Mining & Industries, the unlisted unit of the $44.3-billion Aditya Birla Group, has come out as the top bidder for Pro Minerals Pvt Ltd with an offer of about Rs 450 crore, a bid that would see banks getting a proper portion of their outstanding advances.

Lenders led by Bank of Baroda voted for the Essel Mining plan that also covers some capital infusion, said two senior bankers aware of the development.

Pro Minerals has a one million tonnes per annum iron-ore beneficiation plant and a one million tonne per annum pellet plant at Basantpur in Odisha. The iron-ore beneficiation process has been designed by all mineral GmbH, Germany and pelletization by Primetals Technology Austria GmbH (formerly Siemens VAI Metals Technologies GmbH, Austria). Bank of Baroda referred Pro Minerals to the bankruptcy court after it failed to repay its dues. Other lenders cover State Bank of India, UCO Bank, Union Bank, and Axis Bank.

“The total offer made by Essel Mining is of approximately Rs 450 crore, which includes Rs 275 crore as dues to lenders and the balance Rs 175 crore by way of capital infusion for restarting the unit and running the company,” said a banker who did not want to be named.

The capital infusion will involve both equity and debt portions. This apart, the plan also outlines 100% payment to operational creditors toward admitted claims other than concerned party.

The corporate insolvency resolution process (CIRP) was under Sumedha Management’s BijayMurmuria, who denied to give details when contacted.

The resolution plan has already been filed with the Kolkata bench of NCLT for final approval. Apart from Essel Mining, ShyamMetalics was also in the fray, among others.

Essel Mining & Industries is among the biggest iron-ore mining companies in the non-captive private sector and the largest producer of noble ferroalloys in India. The company operates mines in the mineral-rich Barbil-Joda belt of Odisha, near that of Pro Minerals plant.

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