Hindalco Industries signs JV Agreement for Talabira II & Talabira III Coal Blocks

Hindalco Industries Ltd has announced that the Company has entered into a Joint Venture Agreement (JVA) with Mahanadi Coal Ltd (MCL), a subsidiary of Coal India Ltd. and Neyveli Lignite Corporation Ltd. (NLC) in respect of Talabira II and III Coal blocks. The Joint Venture Company (JVC) is expected to be formed in the next 3-6 months and the Company will have 15% shareholding with MCL holding 70% and NLC holding 15%.

The JVC is expected to commence coal mining of 20 MTY by late 2009 / early 2010. At full capacity, the Company will evacuate 3 MTY for end use in the captive power plant to operate the smelter in its project Aditya Aluminium in Orissa.

The JVA is subject to the final approval of the GoI and the respective Boards.

The stock was trading at Rs.161.20, up by Rs.1.05 or 0.66%. The stock hit an intraday high of Rs.163.95 and low of Rs.160.20. The total traded quantity was 327316 compared to 2 week average of 2776609.

Source : Equity Bulls

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