India's mining companies surge on royalty rate approval for strategic minerals

Gujarat Mineral Development

12/10/2023 10:39

** Shares of mining companies MMTC  MMTC.NS , NMDC
 NMDC.NS , Coal India  COAL.NS , Moil  MOIL.NS  Gujarat Mineral
Development Corp  GMDC.NS , Hindustan Zinc  HZNC.NS , Hindustan
Copper  HCPR.NS  and National Aluminium Co  NALU.NS  rise
between 2% and 20%
    ** MMTC up 20%, MOIL up 10%, NMDC up 6% and GMDC up 5%,
respectively
    ** Shares rise after government approved royalty rates for
mining strategic minerals lithium, niobium and rare-earth
elements
    ** Approval to enable government to auction blocks for these
minerals for the first time in India
    ** Royalty rate of 3% fixed on lithium and niobium, 1% for
rare-earth elements 
    ** Royalty rate is a crucial financial consideration for
bidders in auction of blocks 
    ** India currently conducting exploration for critical and
strategic minerals 

 (Reporting by Bharath Rajeswaran in Bengaluru)
 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463))