“The company is pleased to inform that the Government of Chhattisgarh had executed the Mining Lease yesterday, which has been duly registered today in favour of the Company for mining of coal over a period of 30 years for its Bhaskarpara Commercial Coal Mine in District Surajpur,” according to a stock exchange filing.
Operational activities are set to begin with overburden removal next month, followed by coal extraction in the subsequent quarter. The coal mined will strengthen Prakash Industries’ integrated steel operations by ensuring a stable supply and reducing costs.
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As a commercial mine, the Bhaskarpara project is also expected to generate additional revenue and enhance profitability through open-market coal sales.
“The supplies of coal from this mine shall provide stability to the company’s Integrated Steel operations as well as result in significant cost reductions. Additionally, this being a commercial mine, it shall also boost the revenue and the profitability through the sale of coal in the open market,” it added.
Shares of Prakash Industries Ltd ended at ₹162.70, up by ₹1.60, or 0.99% on the BSE.
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