Mukand official says co's JV with Vini Iron to start ops in 3-4 mo
Friday, Sep 5
.
MUMBAI - The mining joint venture between Mukand Ltd and Vini Iron
and
Steel Udyog Ltd is expected to start operations in 3-4 months, a
Mukand
official said today.
Mukand had signed a joint venture agreement with Kolkata-based
Vini Iron
earlier this week for captive mining of Rajhara North (central and
east) coal
block in Jharkhand.
The coal in the Jharkhand mine is of non-coking variety.
The joint venture company is expected to carry out mining
operations and
allocate the production from the mine to Mukand and Vini Iron in the
proportion of 58.81% and 41.19%, respectively.
As the coal to be mined is of non-coking variety, benefits of coal
mining
are not likely to reflect immediately on Mukand's balance sheet,
analysts said.
Rising input costs is a critical factor influencing steel
companies'
financial performance.
Since Apr 1, Mukand raised steel product prices four times. It had
last
raised prices on Aug 1, the company official said.
Mukand is eyeing the price movement of key inputs such as coking
coal, furnace oil, coke, steel scrap, and nickel before taking a
decision on
further hike in product prices, the official said.
Prices of coke, coal, nickel, and steel scrap have edged lower
while that
of furnace oil have moved up.
At 3:08PM, Mukand shares were traded at 76.20 rupees on National
Stock
Exchange, down marginally from Thursday's close. End
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