Mine lease renewal on expected lines, but more triggers ahead for NMDC

The miner will gain from improving global iron ore prices, rising domestic steel prices and supply disruption in Odisha

India’s largest iron ore miner, NMDC, has gained over 20 per cent from its November lows. While Wednesday’s news of the company getting a 20-year lease extension for its iron-ore mines of Bailadila in Chhattisgarh is positive, improvement in global ore prices as well as domestic steel prices are equally big triggers.

Analysts say, the extension was expected as the recent amendment in MMDR Act had already removed the regulatory overhang of mining lease renewals for NMDC's mines in Chhattisgarh and Karnataka. On the other hand, the rising global iron-ore prices will not only improve NMDC’s realisations, but also improve