GMDC surges after coal mine allocation

Gujarat Mineral Development Corporation Limited is a major Indian state-owned mineral and lignite mining company based in Ahmedabad. GMDC was founded in 1963. Its product range includes essential energy minerals like lignite, base metals, and industrial minerals like bauxite and fluorspar.

The Coal Ministry gave three commercial coal mines to GMDC:

The allocation of three coal mines by the Union Coal Ministry caused the share prices of Gujarat Mineral Development Corporation (GMDC) to soar in the early trading session. Together, the three coal mines have a Peak Rated Capacity (PRC) of about 30 million tonnes per year (MTPA). The three mines, Machhakata (Revised), Kudanali Lubri, and Sakhigopal-B Kakurhi, are expected to generate an annual revenue of Rs 2,991.2 crore and require a capital investment of Rs 4,500 crore, the ministry announced on September 5.

According to the statement, two of these three coal mines are partially explored and one is fully explored. The announcement also stated that NLC India Limited has been assigned the Machhakata (Revised) coal mine, Gujarat Mineral Development Corporation has been assigned the Kudanali Lubri coal mine, and TANGEDCO has been assigned the Sakhigopal-B Kakurhi coal mine.

The ministry stated in a statement on September 5 that the combined Peak Rated Capacity (PRC) of the three coal mines for which Vesting Orders have been issued is approximately 30 million tonnes per annum (MTPA), with geological reserves estimated to be around 2,194.10 million tonnes (MT). It will directly and indirectly create jobs for about 40,560 people. In the first half of the current fiscal year, the nation produced 384.08 million metric tons (MT) of coal, an increase of 6.48 percent.

The GMDC stock is rising quickly:

The share price of GMDC is currently trading at Rs. 370.20, up 3% from yesterday and nearly 2% from today.

Conclusion: Because the Union Coal Ministry has isolated three coal mines, GMDC will see an increase in revenue and stock value.