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JK Lakshmi Cement, Shree Cement eyeing offshore mining foray to secure lime mud

In 2018, the Geological Survey of India (GSI) discovered potential zones of high grade limemud and limesand off Gujarat and Maharashtra coasts. These are useful for cement companies that can cut down on the raw material import bills.

April 02, 2024 / 15:17 IST
Cement companies are keeping a close eye on the offshore mineral blocks due to the availability of thousands of millions of tonnes of lime mud deposits undersea, a key raw material for them
     
     
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    Key cement players JK Lakshmi and Shree Cement are among other top cement manufacturers that are keen to participate in the offshore mineral block auction, to be held in June or July this year, top executives told Moneycontrol.

    Cement companies are keeping a close eye on the offshore mineral blocks due to the availability of thousands of millions of tonnes of lime mud deposits undersea, a key raw material for them. Currently, lime is extracted from limestone available on land.

    "We are actively considering participation in exploration auctions to leverage the presence of lime mud along the Indian coast. This strategic move aligns with our commitment to securing sustainable access to raw materials for our operations," said Arun Shukla, President and Director, JK Lakshmi Cement.

    Undersea lime mud, also known as marine lime mud, is a type of sediment found on the ocean floor composed primarily of finely ground calcium carbonate particles derived from the shells and skeletal fragments of marine organisms like plankton and corals. While lime mud itself is not used in cement making, the calcium carbonate content in lime mud can potentially be utilised as a source of calcium oxide (quicklime) in cement production. Quicklime, derived from limestone or calcium carbonate-rich materials, is a key ingredient in cement manufacturing.

    In 2018, the Geological Survey of India (GSI) discovered potential zones of high grade lime mud and lime sand off the Gujarat and Maharashtra coasts.  GSI’s research vessel Samudra-Ratnakar explored the deposits in the Arabian Sea and found 72,000 million tonnes of lime mud from an area of 6,603 square km.

    When asked about offshore minerals mining especially lime mud, Shree Cement Managing  Director Neeraj Akhoury said, "We're keen to use this (mining) expertise to explore opportunities in mining other minerals that have good business potential and viability."

    "Lime mud is easily mineable by the dredging method as it is very soft material. However, dredging technology needs to be customised since lime mud deposits are occurring at about 80 metre water depth. The lime mud deposits  in Indian offshore are of higher grade, as it has higher CaO content,  which India currently imports from other countries," according to notified private exploration firm, Geo Marine Solutions.

    There is also an industry buzz that some of the other bigger cement players may be interested in these offshore assets. UltraTech declined to comment on an email sent by Moneycontrol.

    Geology expert from Georocks, Souradeep Mukherjee said, "There is no clarity on how the companies will go ahead with the mining since this is being done in India for the first time. There has been no feasibility study done ever to avail details".

    Sustainable mining of lime mud from Gujarat's offshore may possibly be achieved by pneumatic dredging.  The cost of transportation of limemud from the mining site (80 – 100 km offshore) to beach facilities near Porbandar, Gujarat would be less than $ 5 per tonne, according to a 2022 study published in the Indian Journal of Geo Marine Sciences.

    The Ministry of Mines will commence the auction of offshore mineral blocks by June or July this year, Union Minister for Coal and Mines, Prahlad Joshi, said last month.

    The Geological Survey of India has already handed over 35 offshore mineral blocks for auction to the government and 24 more blocks are in the pipeline to be handed over, according to the Ministry.

     

    Aishwarya Nair
    first published: Apr 2, 2024 03:17 pm

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