Vedanta secures two key mineral blocks in Karnataka and Bihar

22 Jul 2024 , 09:40 AM

Vedanta Ltd announced on Sunday that it has secured two critical mineral blocks put up for sale by the Ministry of Mines. The acquired blocks are located in Karnataka and Bihar, as stated in the company’s filing to the Bombay Stock Exchange (BSE).

The company has been designated as the ‘preferred bidder’ for the Gollarahatti-Mallenahalli Nickel Chromium and PGE Block, and the Genjana Nickel Chromium and PGE Block. These blocks were part of the second and third rounds of the critical mineral blocks auction.

The Gollarahatti-Mallenahalli Block in Karnataka spans 1,238.122 hectares and is at the G4 level of exploration, indicating a reconnaissance survey stage.

The Genjana Block in Bihar covers an area of 788.85 hectares and is at the G3 level of exploration, indicating a preliminary exploration stage.

Exploration for mineral deposits typically involves four stages: reconnaissance survey (G4), preliminary exploration (G3), general exploration (G2), and detailed exploration (G1).

Vedanta emerged as the highest final price offeror in the live e-auction, with 15.00% for the Gollarahatti-Mallenahalli Block and 6.05% for the Genjana Block.

At the time of writing on July 22, 2024 at 9:39 am shares of Vedanta Ltd is  currently trading at ₹444 which is a 1.08% gain than the previous close. Vedanta Ltd stock has gained a total of 63% in the last one year, and witnessed a 72% gain since the beginning of the year.

The Ministry of Mines announced the Tranche II and Tranche III auctions on February 29, 2024, and March 14, 2024, respectively. Vedanta participated in the auctions and secured the blocks, further strengthening its portfolio in the mining sector.

Vedanta Limited is an Indian multinational mining company headquartered in Mumbai. It operates mainly in iron ore, gold, and aluminium mines across Goa, Karnataka, Rajasthan, and Odisha.

The company, initially known as Sterlite Industries, was founded by D.P. Agarwal in the 1980s. Agarwal acquired mining concessions in various Indian states, with his sons Navin Agarwal and Anil Agarwal joining him later and currently managing the company.