Tata Power rose 1.07% to Rs 94.05 at 9:55 IST on BSE after the company said its Russian subsidiary bagged the mining licence of a thermal coal mine in Kamchatka province in Far East Russia.
The announcement was made after market hours on Friday, 22 December 2017.Meanwhile, the S&P BSE Sensex was up 19.04 points, or 0.06% to 33,959.34.
On the BSE, 4.73 lakh shares were traded in the counter so far, compared with average daily volumes of 18.35 lakh shares in the past two weeks. The stock had hit a high of Rs 96.20 and a low of Rs 93.60 so far during the day. The stock hit a 52-week high of Rs 97.05 on 29 November 2017. The stock hit a 52-week low of Rs 72.60 on 23 December 2016.
Tata Power announced that its Russian subsidiary, Far Eastern Natural Resources LLC, has been awarded the mining license of a thermal coal mine in Kamchatka province in Far East Russia. The subsidiary participated in financial auction process at Petropavlovsk, Kamchatka, on 22 December 2017 and was awarded the license at approximately $4.7 million.
The Kamchatka project site has been declared as a Special Economic Zone and will qualify for various concessions including protection against change of laws. The coal mine has high quality thermal coal reserves of over 380 million tonnes, which the company aims to deploy for its facilities in Mundra and Trombay; as also sell in Far East Asian markets. The venture has also received consents on transfer-pricing issues. The company intends to carry out detailed exploration to enable it to formulate a mining plan and work out capex outlook to implement the project in a phased manner to reach a stable throughput of 8 to 10 million tonnes per annum. The company proposes to work with associates, contractors, who are not under any sanctions. The mine project is located close to the coast. The infrastructure comprising haulage road and port facilities shall be developed by the Government through their State budget.
On a consolidated basis, Tata Power Company's net profit fell 43.63% to Rs 268.50 crore on 6.15% growth in net sales to Rs 7657.30 crore in Q2 September 2017 over Q2 September 2016.
Tata Power is an integrated power company.
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