GMDC Ltd. is holding a Mining Lease for Base Metal at Ambaji since July, 1973 for about 7.5 millions tonnes of base metal deposit consisting of lead, zinc and copper ore, containing 10% total metal contents.
The Corporation has entered in to MOU with RBW Minerals Industries Ltd. a subsidiary of Binani Industries Ltd. in Sept., 2001, and have formed a joint venture Company, known as RBG Minerals Industries Ltd. In-principle approval for the MOU was obtained from the Government of Gujarat. GMDC Ltd. will have 25% equity in this Joint Venture Project. The ore obtained from GMDC's Mine at Ambaji as well as from RSMM's mine at Deri and another base metal deposit at Basantgarh in Rajasthan, will be fed to the Mineral Beneficiation plant proposed at Ambaji for the production of clean concentrates, which shall be the raw material for different smelters elsewhere in the Country for extraction of metals like Lead, Zinc and Copper. By combining the three different deposits, it is proved that the project is technically as well as commercially viable.The pre-feasibility report showed good profitability of the project with IRR of 46% and payback period of 2.5 years. The Detailed Feasibility ensured the projects' viability and USTDA declared the project as " Robust". An investment of Rs.131.7 crores was envisaged in the first phase.
The technology under consideration by the Joint Venture will require comparatively very small area. As a result, the requirement of forest land has been reduced from 1152-82-18 hectares to 171-38-90 hectares by a modified mining proposal. The modified proposal also included the allocation of Rs.3.0 crores for eco-restoration and rehabilitation of wild life in the proposed project. The old quarters built in the past will be used for the project activities and no new construction is proposed in the lease area.
The proposed project is located in the backward region generating local employment to the tune of about 180 people directly and about 1000 people indirectly which will bring social and economical benefits to the society at large. Over and above Rs 12 Crore per annum as royalty on the ore mined along with taxes applicable on the produce will be remitted to the State exchequer.