InvestorQ : what will be the view on NMDC considering the long pending issue of Royalty and recent court decision
Shrikant Panadi made post

what will be the view on NMDC considering the long pending issue of Royalty and recent court decision

Answer
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Mahima Roy answered.
1 month ago


I think you are referring to the recent court case over the Donomalai iron ore miles in Karnataka where the state government had refused to renew the lease license for the mines unless the state’s share of royalty was hiked to 80%. The court has ruled in favour of NMDC.

That means, the shut mines should be allowed to function soon and that will enable the company to bring production back to normal. It should also give a support to the stock where prices had corrected by more than 36% in the last few months.

In addition, iron ore prices have also gone up after the Vale mines in Brazil, the largest iron ore producer in the world, saw its production disrupted due to floods in Brazil bringing mining activity to a standstill. All that has worked in favour of NMDC.