Moil faces Rs 16.77 crore penalty for excess production, plans to appeal

Penalty relates to excess production at the company's Tirodi Mine beyond the environmental clearance and consent to operate limits during the periods FY94 to FY96 and FY07 to FY09

Moil Ltd, a government-owned manganese ore mining company, stated that it has received a penalty order from the Collector of Balaghat, Madhya Pradesh, amounting to Rs 16.77 crore.

 

In an exchange filing on Wednesday, the company mentioned that the penalty relates to excess production at the company’s Tirodi Mine beyond the environmental clearance and consent to operate limits during the periods 1993-94 to 1995-96 and 2006-07 to 2008-09.

 

The order, dated January 3, 2025, follows a ruling in the Writ Petition (Civil), No 114 of 2014 (Common Cause vs. Union of India & Others) dated August 2, 2017, which was published in the official gazette on November 23, 2017.

 

The due date for the payment of the penalty is set for January 8, 2025.

 

Moil mentioned that it would appeal the order before the appellate authority and assured stakeholders that the penalty would not affect its operations or other activities.

 

Moil, previously known as Manganese Ore (India) Limited, is headquartered in Nagpur and holds the status of a Miniratna company. It is one of India’s top producers of manganese ore, a key component in steel production and other industrial processes.

 

Strong ops performance in FY25

Moil reported strong operational performance in the ongoing financial year 2024-25 (FY25). The company registered sales of 990,000 tonnes in the first eight months of FY25, marking a 4.76 per cent year-on-year increase. It also surpassed a turnover of Rs 1,000 crore within the same period. 

 

In its third quarter update, Moil reported its best-ever quarter production of manganese ore at 460,000 tonnes, with sales reaching 388,000 tonnes, an increase of 13 per cent compared to the same period last year. Additionally, the company’s production for April-December 2024 stood at 1.33 million tonnes, up 4.5 per cent year-on-year, while sales grew by 3.5 per cent to 1.139 million tonnes.

 

Moil also achieved a 19 per cent year-on-year increase in exploratory core drilling, reaching 72,340 metres. Over the past year, Moil shares have gained 7 per cent, compared to a 12 per cent rise in the Sensex, reflecting its steady growth trajectory in the mining sector.