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http://www.icicidirect.com/mailimages/ICICIdirect_MetalsMining_EventUpdate.pdf
K a r n a t a k a i n c h e s c l o s e r t o r e s t a r t mi n i n g…
The Supreme Court (SC) has accepted most of the recommendations of
the Central Empowered Committee (CEC). However, the apex court has
placed certain conditions before mining activity can be resumed. The SC
has directed the reclamation & rehabilitation (R&R) activity to start
immediately under the supervision of the CEC. The mines are likely to
resume production only when the R&R activity undertaken by
respective miners is complete and approved by a certified authority. We
expect mining activity for mines classified in “A” category to restart in
three to five months. The SC has also accepted the recommendations of
the CEC to cap mining with a production ceiling of 25 million tonnes
(MT) for Bellary and 5 MT for Chitradurga and Tumkur together.
Key highlights
The implementation of R&R Plans for all three categories shall start
immediately. The preparation, implementation and monitoring of the R&R
Plan will be under the supervision of the CEC.
The sale of iron ore would continue in the e-auction route.
In next week’s April 20, 2012 hearing, the CEC with regard to stockyard is
also likely throw some light on the start of preparatory work for category
“A” mines.
V i ew
This is a positive development for steel plants operating in Karnataka. This
move will lead to improved availability of iron ore in the state. On the
back of improvement in iron ore availability the JSW Steel plant is likely
to operate at higher capacity utilisation level, going forward. However,
prices of iron ore are expected to stay at elevated levels. We await any
further details from the Supreme Court. The next hearing is scheduled on
April 20, 2012. We are keeping the estimates and target price for both
JSW Steel and Sesa Goa unchanged. We have a HOLD rating on both
stocks with a target prices of | 682 for JSW Steel and | 200 for Sesa Goa.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
http://www.icicidirect.com/mailimages/ICICIdirect_MetalsMining_EventUpdate.pdf
K a r n a t a k a i n c h e s c l o s e r t o r e s t a r t mi n i n g…
The Supreme Court (SC) has accepted most of the recommendations of
the Central Empowered Committee (CEC). However, the apex court has
placed certain conditions before mining activity can be resumed. The SC
has directed the reclamation & rehabilitation (R&R) activity to start
immediately under the supervision of the CEC. The mines are likely to
resume production only when the R&R activity undertaken by
respective miners is complete and approved by a certified authority. We
expect mining activity for mines classified in “A” category to restart in
three to five months. The SC has also accepted the recommendations of
the CEC to cap mining with a production ceiling of 25 million tonnes
(MT) for Bellary and 5 MT for Chitradurga and Tumkur together.
Key highlights
The implementation of R&R Plans for all three categories shall start
immediately. The preparation, implementation and monitoring of the R&R
Plan will be under the supervision of the CEC.
The sale of iron ore would continue in the e-auction route.
In next week’s April 20, 2012 hearing, the CEC with regard to stockyard is
also likely throw some light on the start of preparatory work for category
“A” mines.
V i ew
This is a positive development for steel plants operating in Karnataka. This
move will lead to improved availability of iron ore in the state. On the
back of improvement in iron ore availability the JSW Steel plant is likely
to operate at higher capacity utilisation level, going forward. However,
prices of iron ore are expected to stay at elevated levels. We await any
further details from the Supreme Court. The next hearing is scheduled on
April 20, 2012. We are keeping the estimates and target price for both
JSW Steel and Sesa Goa unchanged. We have a HOLD rating on both
stocks with a target prices of | 682 for JSW Steel and | 200 for Sesa Goa.
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