Metals & Mining
Vedanta readies Rs 30,000-crore war chest to pursue further deleveraging, growth
Vedanta Ltd prepared a Rs 30,000 crore war chest from various funding sources to accelerate debt reduction and pursue growth. This includes proceeds from qualified institutional placement, offer for sale, and dividends, coupled with existing cash reserves. The company is focused on deleveraging, transformational projects, and a planned demerger to attract investment.
Enforcement of new mining cess may increase cost pressure for steel makers: Icra
Following the Supreme Court's ruling, states may impose a mining cess, potentially raising costs in the domestic steel industry. This change could compress margins for both primary and secondary producers. The power sector and primary aluminium producers, dependent on coal, may also face increased supply costs, Icra noted.
In worst case scenario, Coal India's impact may touch Rs 35,000cr in SC mining tax ruling: Official
Coal India is facing a potential financial impact of Rs 35,000 crore in a "worst-case" scenario due to a Supreme Court review on mining taxes. The company's subsidiaries Mahanadi Coalfields Ltd and Central Coalfields Ltd are the most affected, with uncertainty surrounding the recovery of taxes from customers. Coal India Chairman P M Prasad expects a net impact of Rs 6500-7000 crore, pending further clarity on the matter.
India's silver imports to double on demand for solar, investment
India's silver imports are set to nearly double this year due to rising demand from solar panel and electronics makers. Investors are purchasing silver for better returns compared to gold. Imports might reach up to 7,000 tons. The import duty cut has also boosted investment demand.
Gold deposits found in different districts of Odisha, state govt plans to auction it
Gold reserves have been discovered in multiple districts of Odisha, including Deogarh, Keonjhar, and Mayurbhanj, according to Steel and Mines Minister Bibhuti Bhusan Jena. The Geological Survey of India found gold during a general exploration for copper ore. Steps are being taken to auction the blocks and conduct further surveys in other areas.
Vedanta Aluminium appoints Fabio Roberto Martins as CEO of Billets
Vedanta Aluminium has appointed Fabio Roberto Martins as CEO of its billets segment. Martins will drive strategy and manage operations as the company plans to expand its billet capacity to 1.2 million tonnes annually. Martins' extensive experience in the aluminium industry is seen as a key asset for the company.
Hindalco to spend $10 billion on expanding operations in India and US: KM Birla
Hindalco Industries plans to invest $10 billion in expanding its capacities across India and its US subsidiary Novelis Inc, as announced by chairman Kumar Mangalam Birla. The projects include expansions in aluminium and copper smelters, a new alumina refinery, and the Bay Minette plant. These efforts align with India's development goals, focusing on urbanization, digital life, clean energy, and e-mobility. Hindalco aims to cater to the nation's growing infrastructure needs, including electric vehicles and solar energy, with substantial investments in Odisha and Gujarat.
Hindalco to pump in USD 10 billion for expansion in India, US: KM Birla
Hindalco is currently evaluating a nearly 200,000 tonne-brownfield expansion at its Aditya Aluminium smelter in Odisha, which will be substantially powered by renewable energy. The company also plans to expand its copper smelting capacity and is exploring setting up a brownfield facility in Gujarat to meet the growing needs of the country for this critical metal.
Coal India actively pursuing acquisition of critical minerals in India, abroad: Chairman
Coal India is actively pursuing the acquisition of critical minerals, such as lithium, domestically and overseas to reduce import dependence. These minerals are essential for clean energy technologies, particularly in the production of batteries for electric vehicles. The company has successfully secured its first non-coal mineral mining venture in India and plans to continue participating in auctions for critical mineral blocks. Coal India aims to ensure self-reliance in coal production and provide quality coal for power generation at a fair price.
NCLAT asks RP to bring on record e-mail sent to successful bidder Sarda Energy seeking clarification
The NCLAT asked SKS Power Generation's resolution professional to present communication with Sarda Energy about their resolution plan after concerns from Torrent Power and Vantage Point Asset Management. Both firms contested Sarda's selection, citing altered commercial terms. The CoC denied any bias, confirmed receiving funds from Sarda, and defended the decision process.
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Centre can lower royalties to minimise impact on mining companies post Supreme Court ruling: Ambit Capital
"Interestingly, since WB (West Bengal) has been collecting mining tax all these years, it's the only state that is deprived of enhanced royalty rate that was allowed in 1991. That's as clear a precedent as one needs. Therefore, net impact to companies from prospective dues would most likely be minimal," Ambit Capital said.
How Tata Steel and JSW Steel will be impacted by SC ruling on mining royalty
Tata Steel, JSW Steel, and other mining companies might face increased costs due to additional state-imposed mining taxes, as per a Supreme Court decision. This could reduce profitability and impact the value chain, causing inflation. States are now authorized to levy taxes and claim backdated royalties, significantly affecting the financial status of impacted companies.
Coal Scam: Special CBI court discharges bizman Manoj Kumar Jayaswal
A special CBI court discharged industrialist Manoj Kumar Jayaswal in a case linked to the coal block allocation scandal. This marks Jayaswal’s fourth discharge, following three similar outcomes in money laundering cases by the ED. The CBI had alleged that Jayaswal's company used forged documents to obtain the Chitarpur Coal Block in Jharkhand. However, the court found no case for charges, ruling that there was no evidence of deception or misrepresentation affecting the allocation. Jayaswal’s earlier discharge in a related money laundering case further reinforces his cleared status.
National coal index drops 3.48 per cent in June 2024 amid rising production and ample supply
In June 2024, the National Coal Index dropped by 3.48% to 142.13 points from last year's 147.25 points, according to the Ministry of Coal. This decline reflects a balanced market and ample coal supply. Production rose by 14.58%, ensuring stable supply for key sectors, crucial for maintaining energy security.
Mining tax case: Odisha to get a Rs 1 lakh crore bounty from SC ruling. What about others?
Odisha stands to reclaim over Rs 1 lakh crore following the Supreme Court's approval of retrospective tax collection on mineral-bearing land from 2005. Starting in April 2026, Odisha and other mineral-rich states like Andhra Pradesh and Telangana will begin receiving instalments. The ruling also reinstated the ORISED Act, allowing up to 20% annual tax.
Stake sale in Hindustan Zinc to boost funds with Vedanta for debt repayment, capex
Vedanta Ltd's board approved selling a 3.31% stake in Hindustan Zinc Ltd, worth over Rs 8,000 crore, will enhance funds for debt repayment and capital spending. The sale reduces Vedanta’s stake in HZL to 61.61%. This move is credit positive for Vedanta Resources Ltd's creditors but will lower future dividends from HZL.
