Sandur Manganese tumbles down

Sandur Manganese is deep in the red today after it announced suspension of mining operations since yesterday. The stock, which had spiked up last week after the SC cleared iron mining in Karnataka, is down today at Rs.598, down almost 4%.

The Company had mining leases granted under the provisions of Mines & Minerals (Development & Regulation) Act, 1957 (MMDR Act) for a period of 20 years effective from January 01, 1994 and the same period has expired on December 31, 2013.

In compliance with the provisions of Rule 24A(1) of the Mineral Concession Rules, 1960 (MC Rules) the Company had applied for its renewal more than 12 months prior to its expiry and accordingly the Company is entitled to continue its operations under the deemed renewal provisions prescribed under Rule 24(A)(6) of the MC Rules.

However, without taking cognizance of the aforesaid deemed renewal provisions the Forest Department has directed suspension of mining operations with effect from January 01, 2014. Accordingly, the Company has suspended all activities in its mining leases and efforts are being made to obtain orders for resumption of operations.