Metal stocks gain as government clears new mining policy

Eight metal stocks were up between 0.44% to 4.32% after the goverernment on Thursday, 13 March 2008, approved a long-delayed mining policy.

JSW Steel (up 4.32% to Rs 936), Sesa Goa (up 2.81% to Rs 3,337), Hindalco Industries (up 2.65% to Rs 178.30), Sterlite Industries (up 2.56% to Rs 750), Steel Authority of India (up 2.47% to Rs 199), Jindal Stainless (up 1.7% to Rs 131), Tata Steel (up 1.26% to Rs 706), and Jindal Steel (up 0.44% to Rs 1,992.45) edged higher.

The implementation of National Mineral Policy 2008 would be likely to attract foreign direct investment of $250 million per annum in the mining sector by the end of five years.

The new policy, delayed for nearly two years by wrangling between federal and state governments, will shorten the time it takes for new mining leases to be granted by state and federal governments to about six months to a year.

Under the new guidelines, foreign and domestic firms should find it easier to invest in the exploration and mining of gold, diamonds and metals and prospecting companies will automatically obtain a mining licence.