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Varun Energy signs MoU with DAE

Varun Energy Madagascar, a group company of Varun Industries that discovered multi billion-dollar rare earth last month in Madagascar, on Friday said it has signed a memorandum of understanding (MoU) with a government company under the department of atomic energy (government of India).

business Updated: Jul 22, 2011 21:22 IST
HT Correspondent

Varun Energy Madagascar, a group company of Varun Industries that discovered multi billion-dollar rare earth last month in Madagascar, on Friday said it has signed a memorandum of understanding (MoU) with a government company under the department of atomic energy (government of India).

Varun Industries would sell entire heavy mineral concentrate (rare earth) such as llmenite, rutile, lecoxene to the department of atomic energy (DAE).

Rare earth is used for production in many appliances from tubelight to high-tech pharmascutical equipments, mobile phones and microphones.

“DAE will purchase entire mineral concentrate from Varun Mines to ensure suitability of the constituent minerals for its local operations. Varun will install and operationalise its plant at Madagascar to supply mineral concentrate to PSU in next 8-10 months and will supply approximately 5 lakh metric ton per annum of heavy minerals,” the company said.

Recently, the company discovered rare earth in mining blocks covering an area of 62.5 sq. km in Madagasca with resources of about about 266.8 million tons. Although the value of the rare earth would only be ascertained at a later stage, the company estimates it to be worth billions.

“Our strategy is to develop our assets like the rare earth element project and to unlock the value. We plan to operate in an environmentally and socially responsible manner,” said Kiran Mehta, CMD, Varun Group said.