Shree Cement, India’s third-largest cement manufacturer, has secured a limestone mine in Maharashtra. The mine, with estimated reserves of 50 million tonnes, could cater to raw material requirements for a 1.5 million tonne per annum cement manufacturing plant, according to industry experts. The mine will require the winning concessionaire to gain environmental and forest-related clearance. Shree Cement has offered 27% of the total limestone value evacuated from the site, plus monthly royalties.
India’s third largest cement manufacturer, Shree Cement, has won the bid for a limestone mine in Maharashtra’s Chandrapur district with estimated reserves of 50 million tonnes, as per details sourced from a government website. The mine is capable of servicing raw material requirements for a 1.5 million tonne per annum cement manufacturing plant, according to an industry expert ET spoke with.
The mine covers an area of 105 hectares. It is located less than 200 kilometres from Nagpur, where multiple supply routes connect to the company’s cement plants.
The Maharashtra state government launched the auction process in February, with the results expected in the last week of May. A similar mine auction in 2017 for a limestone mine in Chandrapur was hotly contested, with Ambuja, UtraTech, and Dalmia said to have participated. Ambuja Cement eventually won the mine license. Both UltraTech and Ambuja run cement manufacturing plants in Chandrapur.
According to the bidding terms, the bid winner must obtain all environmental and forest clearances. The mines are located near railheads at Chandrapur and Warora stations. The rules outline that rail sidings must be built by the concessionaire.
At around 10.35 AM, Shree Cement was trading 0.36% higher at Rs 24,947.10 against the previous close of Rs 25,038.40 on NSE.