NMDC slips 14.77% in two sessions

State-run mining giant NMDC slipped 3.72% to Rs 86.80, extending yesterday's losses triggered by Karnataka government cancelling the company's lease for Donimalai mine.

On BSE, 23.78 lakh shares were traded in NMDC counter, compared to a 2-week average of 3.12 lakh shares. The stock hit an intraday high of Rs 94.25 and an intraday low of Rs 86.45. It hit a 52-week high of Rs 124.30 on 14 September 2018 and a 52-week low of Rs 86.45 on 6 December 2018.

NMDC announced after market hours yesterday, that the Government of Karnataka has withdrawn its approval to extend the mining lease period of NMDC at Donimalai and auction the said block.

Shares of NMDC fell 11.49% to end at Rs 90.15 yesterday. It has fallen 14.77% in two trading sessions from its close of Rs 101.85 on Monday, 19 August.

NMDC said it filed revision application against the state government's order with Ministry of Mines, Government of India and the hearing is fixed on 21 August 2019.

In November 2018, NMDC suspended operations at its Donimalai mine following the Karnataka government's decision to impose 80% premium on sales of iron ore. NMDC later petitioned the high court (HC), which in July 2019, allowed the firm to resume operations at the mine.

On a consolidated basis, NMDC's net profit rose 21.1% to Rs 1171.56 crore on a 34.8% rise in the net sales to Rs 3263.74 crore in Q1 June 2019 over Q1 June 2018.

NMDC is India's single largest iron ore producer, presently producing about 35 million tonnes of iron ore from 3 fully mechanized mines, two located in Chhattisgarh and one in Karnataka.

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