Shares of ACC Ltd surged following the company’s success in securing a coal mine in Madhya Pradesh during the first day of the 10th round of commercial coal mine auctions, held on November 21, 2024. The auction, organized by the Coal Ministry, saw five coal blocks awarded to various companies, including NLC India Ltd and JSW Energy Utkal Ltd.
Key Details of the Auction
- Winning Companies: ACC Ltd, NLC India Ltd, JSW Energy Utkal Ltd, Mineware Advisors Pvt Ltd, and Shreeji Nuravi Coal Mining and Trading Pvt Ltd.
- Geological Reserves: The five mines hold a total of 2,630.77 million tonnes of coal reserves.
- Production Capacity: The cumulative peak rated capacity of these mines is 12 MTPA.
- Investment and Employment:
- Annual revenue of ₹1,106.91 crore upon operationalization.
- Capital investment of ₹1,800 crore.
- Employment generation for 16,224 people.
ACC Ltd’s acquisition of a coal mine in Madhya Pradesh is expected to significantly strengthen its operational efficiency and cost management in cement production, which heavily relies on coal as a key input.
The 10th round of coal mine auctions, launched on June 21, 2024, aims to boost commercial mining and reduce coal imports. The forward e-auctions for nine blocks began on November 21, with five mines successfully allocated on the first day.
As of 9:23 am the shares were trading 0.71% higher at ₹2,041.65
