NMDC hits new high

There really seems to be no stopping NMDC. The stock opened higher today, going on to hit a  new high at Rs.124.25; profit booking at this level has now put the stock in the red, down at Rs.123.15 – the first time after 8 days of consecutive gains.

The stock is up ever since the Chhattisgarh Government announced that it has extended the lease of four mines that are due for extension in March 2020. The lease has been extended for 20 years.

Of the NMDC’s 33-million tonnes per annum (MTPA) production, Chhattisgarh’s two complexes in Bacheli and Kirandul under Bailadila projects contributed about 24 mtpa (in 2018-19).

Additionally, the company yesterday evening announced that Ministry of Coal has allocated two coal blocks to NMDC, the Rohne and Tokisud North for commercial mining. Both these blocks are located at Hazaribagh District of Jharkhand.

The Rohne coal block has extractable reserves of 191 million tonnes and planned production capacity of 8 million tonnes per annum. The Tokisud North coal block has extractable reserves of about 52 . million tonnes of thermal coal and planned production capacity of 2.32 million tonnes per annum.