Mining cos end on mixed note as govt approves new Bill

Last Updated: Friday, September 30, 2011 - 19:15

Mumbai: Shares of mining companies on Friday ended on a mixed note, with Coal India (CIL) plunging over 5 percent after the government approved the new Mining Bill that calls for them to share profits and an amount equivalent to royalty with the project-affected people.
     
State-run miner CIL plunged 5.15 percent to Rs 332.75 a piece on the BSE. The company, which contributes over 80 per cent of the country's total coal production, was the top loser among the Sensex blue-chips.
     
Metal companies like Tata Steel and Hindalco tanked 3.99 and 1.80 percent, respectively, on the BSE, while state-owned steel maker Steel Authority of India fell 3.75 percent.
     
Gujarat Mineral Development Corporation, too, fell 4.81 percent and Sterlite Industries plunged 4.05 percent.
     
In contrast, Sesa Goa, producer and exporter of iron ore, closed 4.37 percent higher, while mineral producer NMDC closed with small gain of 0.22 percent and JSW Steel settled 0.78 percent up.
     
The BSE metal index closed 2.68 percent lower at 10,995.57.
     
Analysts said mining shares lost sheen on concerns of the bill's impact on miners profitability as the Cabinet approved the mining bill.
 
The Bill is likely to be tabled in Parliament in the Winter Session.
     
Mines and Mineral Development and Regulation (MMDR) Bill, 2011, has provisions for 26 percent profit-sharing by coal miners and an amount equivalent to royalty to be paid by other mineral mining firms with project-affected people.

PTI

First Published: Friday, September 30, 2011 - 19:15

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