Shares of mining cos up on expectations mining ban in Karnataka may be lifted
Shares of mining companies were up on buying momentum on expectations that the ban on mining iron ore may be lifted by month end.
By ET Online | Updated:
MUMBAI: Shares of mining companies were up on buying momentum on expectations that the ban on mining iron ore may be lifted by month end.
The Supreme Court, a year ago, had imposed a ban on mining activities in Karnataka on environmental concerns. According to reports, partial ban on Category A mines were lifted in April 2012.
Meanwhile, the Karnataka government has recommended approval of 8 iron ore mines and approved Sesa Goa’s 2.2 million tonne iron ore mine, said Reuters report.
Some of the companies that have mining interests in the state include Sesa Goa, Kalyani Steel and NMDC.
According to the management of Kalyani Steel, most of the mines in Category A have been cleared by Federation of Indian Mineral Industries.
In an interview to ET Now, RK Goyal, MD, Kalyani Steels said that he expects some iron ore mines to open by end the of this month. The company has restarted operations at plant at 40-50 percent capacity utilization.
He added that cost of iron ore has risen due to scarcity.
If the mines are allowed to begin operations it will come as a big relief for steel maker JSW Steel which has been suffering due to shortage of iron ore.
According to the management of JSW Steel, the company’s Vijaynagar plant is running at 85 percent capacity. It has supply to sustain production for next two months and new supply of iron ore is likely to ease situation.
The company is hopeful of production reaching full capacity in next two months.
At 2:15 p.m.; JSW Steel was at Rs up 2.77 percent on the BSE. It touched a high of Rs 714.90 and a low of Rs 696.95 today.
Sesa Goa was at Rs 202.75, up 3.89 percent on the BSE. It touched a high of Rs 202.90 and a low of Rs 196 today.
Kalyani Steel was at Rs 56, up 3.42 percent on the BSE. It touched a high of Rs 57 and a low of Rs 54.25 today.
NMDC was at Rs 199.10, up 0.48 percent on the BSE. It touched a high of Rs 203.40 and a low of Rs 198.50 today.
Currently, NMDC is the only company to have got the apex court nod to continue work at its two mines in Donimalai and Kumaraswamy.
The Supreme Court, a year ago, had imposed a ban on mining activities in Karnataka on environmental concerns. According to reports, partial ban on Category A mines were lifted in April 2012.
Meanwhile, the Karnataka government has recommended approval of 8 iron ore mines and approved Sesa Goa’s 2.2 million tonne iron ore mine, said Reuters report.
Some of the companies that have mining interests in the state include Sesa Goa, Kalyani Steel and NMDC.
According to the management of Kalyani Steel, most of the mines in Category A have been cleared by Federation of Indian Mineral Industries.
In an interview to ET Now, RK Goyal, MD, Kalyani Steels said that he expects some iron ore mines to open by end the of this month. The company has restarted operations at plant at 40-50 percent capacity utilization.
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He added that cost of iron ore has risen due to scarcity.
If the mines are allowed to begin operations it will come as a big relief for steel maker JSW Steel which has been suffering due to shortage of iron ore.
According to the management of JSW Steel, the company’s Vijaynagar plant is running at 85 percent capacity. It has supply to sustain production for next two months and new supply of iron ore is likely to ease situation.
The company is hopeful of production reaching full capacity in next two months.
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At 2:15 p.m.; JSW Steel was at Rs up 2.77 percent on the BSE. It touched a high of Rs 714.90 and a low of Rs 696.95 today.
Sesa Goa was at Rs 202.75, up 3.89 percent on the BSE. It touched a high of Rs 202.90 and a low of Rs 196 today.
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Kalyani Steel was at Rs 56, up 3.42 percent on the BSE. It touched a high of Rs 57 and a low of Rs 54.25 today.
NMDC was at Rs 199.10, up 0.48 percent on the BSE. It touched a high of Rs 203.40 and a low of Rs 198.50 today.
Currently, NMDC is the only company to have got the apex court nod to continue work at its two mines in Donimalai and Kumaraswamy.
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