Tata Steel gains 2% on plans to start chromite mining

Tata Steel has gained nearly 2% at Rs 461, in early trades, on reports that the leading steel maker has started preparations to begin underground chromite mining at its leasehold area in Sukinda valley in Jajpur district.

The company had been excavating chrome ore from its mines in the area for nearly half a century by open cast method.

“Mining at SCM (Sukinda chrome mine) is fully-mechanised at present. The road map ahead is to operate underground mines. This will go a long way in conserving natural resources and, thereby, contribute to sustainable mining in the country,” HM Nerurkar, managing director of Tata Steel said while flagging off the preparatory work for the underground mining at Sukinda.

The scrip opened at Rs 461 and has so far touched the day's high at Rs 462. Around 20,680 shares changd hands on the BSE counter till 0948 hours.