GMDC gains over 3% on board nod to operationalise coal mine in Odisha

Shares of Gujarat Mineral Development Corporation Limited (GMDC) shares gained more than 3.6% to ₹ 409 apiece on the National Stock Exchange (NSE) on Wednesday after the company Board approved the land resettlement and rehabilitation (R&R) plan for a coal mine in Odisha.

The move paves the way for the company to proceed towards the opening of the Baitarni-West coal mines in Odisha, which is one of the largest in the country. The coalmine has a maximum production capacity (PRC) of 15 million tonnes per annum, GMDC said in an exchange filing.

It will lead to a significant mineable reserve of 468 million tonnes in Baitarni-West, securing a place in the country's top 20 coal-producing mines in terms of annual production capacity.

"This strategic decision spotlights GMDC's commitment to the early operationalisation of the mine, highlighting its pivotal role in enhancing Odisha’s industrial prosperity and also contributing towards Gujarat’s energy security," GMDC added.

The land acquisition plan comprises government and private land of approximately 154.3 Ha and 199.86 Ha, respectively. The R&R plan, being designed for 1,500 affected families, will comprise a robust compensation and employment framework and support the long-term financial stability of landowners, the company said.

In the December quarter, GMDC’s net profit dropped by a sharp 56% YoY to ₹116.8 crore. The company reported ₹266.1 crore in net profit in the year-ago period.

The company's revenue also fell by over 50% as both the mining and power businesses of GMDC reported subdued figures. GMDC posted ₹564.26 crore in revenue from operations in Q3FY 2024, down from ₹ 855.41 crore in the year-ago period.

One of the leading mining and mineral processing players in India, GMDC has five operational lignite mines located in Kutch, South Gujarat, and Bhavnagar region. The company was the second-largest producer of Ignite in India during FY 2022-23.

shares of Gujarat Mineral Development Corporation Limited closed at ₹392.5 apiece, up 0.39%, on NSE.