NALCO, NMDC share prices gain as nod for royalty rates for Lithium, REEs lift prospects

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Indian Stock Market: Metals stocks remained in focus and Nifty metal index was up more than 1% with gains being led by NMDC share price that were up almost 6% . National Aluminium Company share price (NALCO) also gained more than 4% while Hindustan Copper share price was also up almost 2% . The decision by the central government approving royalty rates of 3% each for lithium and niobium and 1% for Rare Earth Elements (REEs) lifted Street sentiments.

The expectations have increased that the government will soon start the auction of critical mineral mines in a few weeks. NMDC has big plans for such metals and has already obtained a prospecting licence to carry out exploration activities for lithium reserves in Karnataka. Other companies as National Aluminium Company Ltd (NALCO), Hindustan Copper are amongst the top Lithium mining companies also a part of the joint venture Khanji Bidesh India Ltd (KABIL), created by the Ministry of Mines.

Also Read- Cabinet approves royalty rates for lithium, niobium, Rare Earth Elements As the news flow remains positive lifting sentiments for these companies, a boost is also being provided by the rebounding iron-ore and base metal prices. The international iron-ore prices that were at $105 a tonne in August are now trading at close to $120 a tonne. NMDC has hiked prices for its produce.

Lump ore prices were hiked to Rs. 5,200 per ton from ₹4950 a tonne. Also, its sales during first half have increased by 25.43% to 20.53 million tonne (MT).