Sandur Manganese & Iron Ores gets approval to increase production; stock up

Sandur Manganese & Iron Ores in focus: Shares of iron ore company, Sandur Manganese and Iron Ores, rose as much as 3.13 per cent to hit an intraday high of Rs 498.40 per share on Friday, September 20, 2024.

The uptick in the share price came after the company announced that it has secured approval from the Karnataka State Pollution Control Board (KSPCB) to increase its manganese ore production capacity.

The approval, granted under the Air and Water Act, permits the company to boost its production from 0.43 million tonnes per annum (MTPA) to 0.55 MTPA at its mining lease.

 

In a stock exchange filing, the company said, “This is to inform stock exchanges that Karnataka State Pollution Control Board (KSPCB), Government of Karnataka, after examining the company's application submitted to KSPCB under the Air and Water Act, has granted Consent for Operation (CFO-Expand) for the enhancement of manganese ore production."

“The company will present all the approvals before the Monitoring Committee constituted by the Hon’ble Supreme Court to operate at the enhanced levels,” it said.

Earlier this week, the company announced that its board of directors approved a proposal to raise up to Rs 1,000 crore through the issuance of equity shares via qualified institutions placement (QIP).

Sandur Manganese and Iron Ores Limited is among the prominent Indian companies engaged in the mining of manganese and iron ore, as well as the manufacturing of ferroalloys and coke. 

As one of the largest producers of manganese ore in India, Sandur Manganese operates in the Hosapete Ballari region of Karnataka, where it conducts semi-mechanised manganese ore mining and fully mechanised iron ore mining.

In addition to mining, the company produces a range of ferroalloys, including ferromanganese, ferrosilicon, silicomanganese, and ferrochrome. 

The company’s roots date back to 1904 when a mining lease was granted by the former ruler of Sandur to a Belgian company. It was officially established in 1954 by Murarirao Yeshwantrao Ghorpade, the eldest son of the former ruler, and became a public limited company in 1964, listed on the Bombay Stock Exchange (BSE).

At 11:01 AM, shares of Sandur Manganese & Iron Ores were trading 2.78 per cent higher at Rs 496.70 per share. In comparison, BSE Sensex was trading 0.99 per cent higher at 84,008.81 levels.