The Hindu Business Line : PMCI platinum hunt back on rails

Merrill Lynch, Fidelity-controlled FMR Corporation and two other investors have put back the first serious platinum exploration efforts in India on rails.

Platinum Mining Corporation of India (PMCI), a British company, which was spearheading the prospecting joint venture in Orissa's Keonjhar district, got bogged down in fierce boardroom battle since its listing on the LSE's AIM segment in April this year.

Merrill Lynch Investment Management, FMR Corporation, State Street Bank & Trust Co and E*Trade UK Nominees Ltd supported Dr Steven Newerby, a former Managing Director of PMCI and founder-promoter of PMCI, in removing the Chairman and two other Directors.

The combined holding of the four institutional investors is 24.24 per cent in PMCI, while Dr Newerby holds 22.3 per cent.

After a new board was reconstituted in July-end, the management team is now refocusing itself on the exploration work, which has been delayed by 6-8 months. Dr Newerby has been appointed as technical advisor to PMCI.

PMCI had formed an India-incorporated 70:30 joint venture with Ferro Alloys Corporation to prospect platinum group of precious metals in the latter's chromite mine at Boula in Orissa.

Dr Newerby has been assigned the responsibility to lead the group that would advance the "development programme" in the Orissa mine through the joint venture entity, Boula Platinum Mining Pvt Ltd (BPM), a source close to the development told Business Line over telephone from London. BPM is committed to investing up to $40 million in the project.

According to the earlier schedule, PMCI was to complete the bankable feasibility study in the quarter ending September 30, 2006. The company had, in its prospectus, said that it would not go in for a second round of fundraising till it was sure of proven reserves at Boula.