Shyam Metalics JV gets LoI for composite licence for iron ore block; share price rises 2%

Shyam Metalics & Energy share price rose 2 percent in early trade on March 27 after the company received composite licence for Surjagad-1 iron ore block in Maharashtra.

At 09:28am, Shyam Metalics & Energy was quoting at Rs 614.20, up Rs 14.35, or 2.39 percent, on the BSE.

The joint venture company, Natural Resources Energy Private Limited (NREPL), received the Letter of Intent. Dorite Tracon Private Limited, a promoter company of Shyam Metalics and Energy Limited, holds 49% of the of the economic interest in NREPL.

The said composite licence is for Surjagad 1 Iron Ore Block for Iron Ore in Angudra, Ramunkal Meta, Puske Meta, Negal Meta village, Etapalli Taluka, and Gadchiroli District, spread over an area of 1,526 hectares.

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The LoI is valid for a period of one year from the date of issuance and during this time, NREPL will fulfill all necessary conditions to secure the final composite license from the Government of Maharashtra.

“This milestone LOI is a testament to the collaborative efforts between Shyam Metalics through its promoter company and Sarda Energy & Minerals Ltd," said B Bhushan, VCMD, Shyam Metalics and Energy Limited.

“It reinforces our shared vision for growth and development within Maharashtra’s mining sector. We are committed to responsibly utilizing this opportunity to create value for all stakeholders while adhering to the highest environmental and safety standards,” he added.

Last week, the company announced its foray into a greenfield expansion project focused on aluminium flat-rolled products. The Group intends to invest a whopping Rs 450 crore in the same, which will also aid capacity expansion of the group.