The share price of state-owned mineral producer NMDC gained more than 2 percent intraday on December 18 after the company’s mining leases were extended for 20 years.

The stock has surged 45 percent in the last three months. It was quoting at Rs 119.50, up Rs 2.35, or 2.01 percent, on the BSE at 1446 hours.

“…has received extension in respect of the mining leases of Deposit 14, Deposit14-NMZ, Deposit-10 and Deposit-5 for a period of 20 years w.e.f. September 2015 upto the year 2035 as per provisions of the Mineral (Mining by Government Company) rules 2015,” the company said in its BSE filing.

The extension letters have been issued by the Chhattisgarh government for mining iron ore in the state’s Balidila region, it added. The mining leases was to run out on March 31, 2020.

In addition, the company was also allocated the Rohne coal block in Jharkhand.”This allocation would ensure the coking coal requirement of NMDC’s upcoming steel plant at Nagarnar, Chhattisgarh to some extent,” the company said.

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