NMDC surges as company to spend Rs 900 crore to ramp up iron ore production from mines in Karnataka
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NMDC is currently trading at Rs. 115.50, up by 4.50 points or 4.05% from its previous closing of Rs. 111.00 on the BSE.
The scrip opened at Rs. 113.05 and has touched a high and low of Rs. 115.95 and Rs. 112.10 respectively. So far 985005 shares were traded on the counter.
The BSE group 'A' stock of face value Rs. 1 has touched a 52 week high of Rs. 143.13 on 11-Apr-2022 and a 52 week low of Rs. 81.27 on 15-Jul-2022.
Last one week high and low of the scrip stood at Rs. 115.95 and Rs. 104.55 respectively. The current market cap of the company is Rs. 33819.19 crore.
The promoters holding in the company stood at 60.79%, while Institutions and Non-Institutions held 26.92% and 12.27% respectively.
NMDC is planning to spend nearly Rs 900 crore in the next two to three years to ramp up iron ore production from seven million tonnes per annum (MTPA) to 10 million tonnes, from its Kumaraswamy mines in Karnataka. An Expert Appraisal Committee under the Minister of Environment and Forests has given its green signal for Environmental Clearance in a meeting held during November 9-11 allowing NMDC to increase the production and the EC is valid up to 2042.
In August, the Supreme Court raised the ceiling limit of iron ore mining from 28 MMT (million metric tonne) to 35 MMT for Ballari district, and from 7 MMT to 15 MMT for Chitradurga and Tumkur districts in Karnataka. Kumaraswamy Mines are located in Ballari district. NMDC has EC for 7 MTPA and also is producing 7 million tonnes. On November 10, the Indian Bureau of Mines (IBM) recommended the company to go from 7 MTPA to 10 MTPA. There will be a crushing and screening and loading plant at the site. For all these works a capex of Rs 898 crore over a period of two to three years will be spent.
NMDC is a state-controlled mineral producer of the Government of India. It is fully owned by the Government of India and is under administrative control of the Ministry of Steel.
