MOIL may open four new mines, earmarks Rs 250 crore for initial outlay

Follows grant of prospecting license in Maharashtra

The Government of Maharashtra has granted a prospecting license to manganese mining company MOIL over an area of 597.44 hectares in the Nagpur and Bhandara districts. Some of this may be used for expanding existing mines, but there is also the possibility of opening at least four new ones, according to a press statement from the company.

The company has already earmarked Rs 250 crore for conducting various activities such as geophysical studies and exploratory drilling required before the start of mining operations, said the statement.  

“After completion of preliminary studies, the Company shall convert these leases to Mining Leases so as to start the mining operations in the coming years,” it said.

It added that environmental, forest and other clearances will be required before operations can commence.

The company has existing leasehold area in Maharashtra of 696 hectares. The latest addition will take the total area under MOIL in the state to 1,293 hectares.

MOIL currently has six mines in Maharashtra, besides four others in Madhya Pradesh.

The new areas comprise of eleven blocks next to its existing holdings in the same districts. MOIL has announced plans to achieve a production of 2.2 million tons by the year 2020-21 from its existing mines. It will spend Rs 600 crore towards its expansion plans, according to the statement.

The stock was up 4.35%, trading at Rs.199.15 at the time of writing.