Prism Cement Ltd. gained more than nine percent in intraday trade on Friday, after the company secured a mining lease from the Madhya Pradesh government. The cement manufacturer will be able to mine limestone for 50 years at two villages in Satna district of the state. Limestone is a key raw material used by manufacturers to produce cement. The mines have an estimated combined reserve of 23.6 million tonnes, according to a press release issued by the company.
A Letter of Intent (LoI) has been inked between the state government and the company, and has been allocated to Prism Cement’s plant in the same district. Letter of Intent (LoI) from the Madhya Pradesh government to mine limestone at two villages in the state.
Limestone requirement is equal to the installed capacity at a cement plant, and with Prism Cement’s 5.3 million tonnes installed capacity, the company can use the mines for at least four years, said an analyst who tracks the sector, but on terms of anonymity.
The company had made the application for this mining lease under earlier regulation.