Select stocks gain on buzz of winning mines

Shares of four companies rose by 0.72% to 5.11% at 11:41 IST on BSE on reports of these companies winning mines with aggressive prices in the government's e-auction of mines.

Meanwhile, the BSE Sensex was up 87.76 points, or 0.3%, to 29,161.34

Sunflag Iron & Steel Company (up 5.11%), Hindalco Industries (up 0.72%), GMR Infrastructure (up 1.36%) and Reliance Infrastructure (up 1.02%) gained.

The government started e-auction of mines on Saturday, 14 February 2015 to boost supply of coal to select sectors to revive economic activity.

As per reports, Hindalco Industries bagged the Kathautia mine in Jharkhand by offering Rs 2860 per tonne of coal. The mine has good quality coal reserves of around 26 million tonne, reports added.

Belgaon block in Maharashtra was reportedly bagged by Sunflag Iron & Steel at Rs 1785 per tonne beating beat Balco, Reliance Cement and Topworth Urja and Metals. The block was earlier owned by Sunflag and has 14 million tonne reserves. Belgaon and Kathautia mines were reserved for steel and cement sectors.

The Talabira-I mine in Odisha was bagged by GMR Chhattisgarh Energy at Rs. 478 per ton as against the floor price of Rs 100 per ton, reports indicated. Talabira-I mine has extractable reserves of nearly 30 million tonne, reports indicated. GMR Chhattisgarh Energy is a unit of GMR Infrastructure and is developing coal-based, thermal power plant in the state of Chhattisgarh.

Anil Ambani-promoted Reliance Cement reportedly bagged the Sial Ghoghri mine in Madhya Pradesh by bidding at Rs 1402 per ton. The floor price for the block was set at Rs 1002 ton. The Sial Ghoghri mine in Madhya Pradesh has a reserve of 6 million tonne, reports indicated. In 2007, Reliance Infrastructure entered into cement manufacturing through its subsidiary, Reliance Cement. Reliance Cement is a wholly owned subsidiary of Reliance Infrastructure and an affiliate of Reliance Infrastructure.

The auctioning of the blocks had become necessary following cancellation of the allocation of 204 coal blocks by the Supreme Court in September 2014 after holding their allotments as illegal and arbitrary.

Powered by Capital Market - Live News