Shree Ganesh to invest Rs 550 cr to start gold mining in Ghana

Tags: News
Kolkata-based Shree Ganesh Jewellery House will be investing around Rs 550 crore in gold mining activities in the African country of Ghana. The company has formed a 100 per cent subsidiary, Shree Ganesh Ghana, for the purpose.

Shree Ganesh Ghana has been in talks with Precious Minerals Marketing Company (PMMC) Ghana on this. PMMC is the government agency OF Ghana that is mandated with buying and selling gold and diamonds from small-scale miners, producing gold jewellery for sale locally and internationally as well as exporting gold on behalf of third parties for a commission.

“In the last one year, several African countries have opened up their small and medium mining sector for overseas companies. These are companies with a size of less than $100 million revenue. The overseas companies have to invest in providing the necessary infrastructure in these mines. Chinese companies have already started making use of the opportunity,” Umesh Parekh, managing director of Shree Ganesh Jewellery House told Financial Chronicle.

“Initially we will be buying semi-refined gold dore bars from a few mines. Subsequently we will invest in the mining activities. This will include making investments in the infrastructure, machinery, plant, cleaning and washing facilities etc,” he said.

The company has proposed to invest $100 million on providing adequate infrastructure in the mines in three years. In the first year, it will procure one tonne of gold dore bars and scale this up in the subsequent years. The Rs 10,000 crore manufacturer and retailer of gold and diamond studded jewellery procures 25 tonne of gold every year.

Recently the company also started manufacturing activities in Bangladesh. The manufacturing base in Bangladesh will not only serve that market but look at exports to the US market also as the country is a beneficiary under the Generalised System of Preferences (GSP) program of America.

The company, which is heavily dependant on jewellery exports, has off late been investing in domestic retail as well.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Signalling good times, current account deficit is likely to grow from here on

    The current account deficit (CAD) numbers for April-June quarter declined sharply to 1.7 per cent of GDP.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Arun Nigavekar

Disruptive innovation in education

The past two weeks had a fair share of interesting ...

Rajgopal Nidamboor

Regain the spirit of focused power

For aeons, the human race has been experimenting with a ...

Gautam Gupta

Manufacturing must keep workers’ welfare in mind

It may be early days yet, but the labour reforms ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture