Shree Cement wins bid for Maharashtra limestone mine – ET Infra

India’s third largest cement manufacturer, Shree Cement, has won the bid for a limestone mine in Maharashtra’s Chandrapur district with estimated reserves of 50 million tonne, as per details sourced from a government website.

The mine is capable of servicing raw material requirements for a 1.5 million tonne per annum cement manufacturing plant, according to an industry expert ET spoke with.

The mine spread over an area of 105 hectares is located at distance of less than 200 kilometre from Nagpur from where multiple supply routes exist to connect with cement plants owned by the company.

The auction process was launched by Maharashtra’s state government in February and results declared in the last week of May.

A similar mine auction in 2017 for a limestone mine located in Chandrapur was hotly contested with players such as Ambuja, UtraTech and Dalmia said to have participated in the auction. The mine license was eventually won by Ambuja Cement. UltraTech and Ambuja both have cement manufacturing plants in Chandrapur district.

Bangur family-promoted Shree Cement has offered to pay 27% of the total value of limestone that is evacuated from the mine. The value is calculated by multiplying the quantity of limestone that is evacuated from the mine and the price of the limestone per tonne that is notified by the Indian Bureau of Mines each month. Payouts have to be made on a monthly basis in addition to which royalties also have to be paid out. Latest available data shows the average monthly prices of cement-grade Limestone were around Rs. 476 per tonne.

Generally bidders will quote well under the notified price because they have to factor in the risks and costs of developing the mine.

The bidding terms state that the winning concessionaire will have to obtain all environment and forest related clearances. The mines are located close to railheads at Chandrapur and Warora stations but rail sidings will have to be developed by the concessionaire.

Shree Cement has cement production capacity in excess of 45 million tonnes per annum. UltraTech and Adani are the only other players with higher cement production capacities.

  • Published On Jun 4, 2023 at 11:41 AM IST

Join the community of 2M+ industry professionals

Subscribe to our newsletter to get latest insights & analysis.

Get updates on your preferred social platform

Follow us for the latest news, insider access to events and more.

Source link

Leave a Comment

Your email address will not be published. Required fields are marked *

Open chat
How May I Help You.
Scan the code
Vishwakarma Guru Construction
Hello Sir/Ma'am, Please Share Your Query.
Call Support: 8002220666