IGC has more than doubled in pre-market trading:
India Globalization Capital Announces $160 Million, 5 Year Iron Ore Supply Contract With Leading Chinese Steel Manufacturer
Press Release Source: India Globalization Capital, Inc. On Tuesday April 27, 2010, 8:15 am
BETHESDA, MD--(Marketwire - 04/27/10) - India Globalization Capital, Inc. (AMEX:IGC - News), a rapidly growing materials and infrastructure company in India, announced today they have signed a 5 year contract with a leading Chinese steel manufacturer, to begin supplying iron ore. The contract is valued at approximately $160 million.
Under the agreement, IGC will deliver 63.5 percent ferrous content iron ore, initially 40,000 Metric Tons (MT) per ship load, building up to 80,000 MT per shipload up to an aggregate of 1,600,000 MT over the life of the contract. The iron ore will be supplied from mines in India and shipped out of the Visakhapatnam port, off the eastern coast of India and out of Karwar on the west coast.
Ram Mukunda, Chief Executive Officer of India Globalization Capital, commented, "Our Chinese customer is a large steel manufacturing and trading company, established in 2001 and located near Shanghai with 2008 revenue of over $500 million. With this significant contract, we now have a backlog of $160 million in our ore business, which we will begin to ship in this quarter. We have quickly become a meaningful supplier of iron ore, attracting high caliber customers. We believe that the materials side of our business, export of ore, and supply of rock aggregate is now poised for significant growth in this fiscal year."
China is the world's largest importer of iron ore and the biggest producer of steel. India is the third largest supplier of ore to China.
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