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JK Cement Wins Bid for Mahan Coal Mine in Madhya Pradesh

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Synopsis:

JK Cement wins the bid for the Mahan coal mine with 107.4 MT reserves and 1.2 MTPA capacity. Despite a 23% drop in Q2 profits, JK Cement share price has gained 20.83% year-to-date.

 

JK Cement news today

JK Cement Ltd. has successfully acquired the Mahan coal mine in Singrauli district, Madhya Pradesh. With geological reserves of 107.4 million tonnes and a peak-rated capacity of 1.2 million tonnes per annum, the mine strengthens the company’s efforts towards self-reliance in coal supply for its cement plants and upcoming projects. Surplus coal will be sold commercially, adding another revenue stream.

Also read: KPI Green Energy Signs MoU with Rajasthan for Hybrid Solar-Wind Projects

JK CEMENT LIMITED

Trade

4515.95-61.34 (-1.34 %)

Updated - 20 December 2024
4646.05day high
DAY HIGH
4500.25day low
DAY LOW
119338
VOLUME (BSE)

Key Takeaways

  • Mahan coal mine reserves: 107.4 million tonnes.

  • Capacity: 1.2 million tonnes per annum.

  • Strategic goal: Enhance self-reliance and commercial coal operations.

  • Financial context: JK Cement share price fell 0.83% on Thursday but has gained 20.83% year-to-date.

Also read: Hyundai Motor India Partners with Amara Raja for AGM Battery Technology

Strategic Importance Of The Acquisition

This marks JK Cement’s second win in India’s commercial coal auctions, following the West of Shahdol (South) coal block. The acquisition aligns with the company’s long-term strategy to reduce dependence on external coal sources, ensuring consistent supply for its cement manufacturing facilities. The move supports operational efficiency while leveraging surplus coal for commercial sales.

Operational Milestones

The vesting order was handed over during a ceremony at Shastri Bhawan, New Delhi, enabling JK Cement to commence mining operations within the stipulated timeline. The integration of the Mahan coal mine into its operations is expected to improve cost efficiency and provide a steady supply chain for its facilities.

Performance Metrics

Metric

Details

Geological Coal Reserve

107.4 million tonnes

Peak-Rated Capacity

1.2 million tonnes per annum

Year-to-Date Stock Gain

20.83%

Q2 FY24 Net Profit Decline

23% (₹136.2 crore)

Market Impact

On Thursday, JK Cement share price declined by 0.83%, closing at ₹4,580.70. However, the stock has gained 20.83% year-to-date, reflecting long-term investor confidence.

The successful acquisition of the Mahan coal mine represents a critical step in JK Cement’s strategy to enhance operational efficiency and achieve self-reliance in coal procurement.

Also read: Hyundai Motor India Partners with Exide for Locally Made EV Battery Cells

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Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

For All Disclaimers Click Here: https://bit.ly/3Tcsfuc

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

For All Disclaimers Click Here: https://bit.ly/3Tcsfuc

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