NMDC share rises 3% as firm resumes work at Donimalai mine

NMDC share was trading 3% higher in Friday's volatile session after the state-owned company resumed production of iron ore from Donimalai mine in Karnataka.

The public sector enterprise resumed production of iron ore in Donimalai after it suspended mining in December 2018, due to a legal battle with the Karnataka government over the issue of imposition of premium on the sale price of the iron ore.

NMDC share opened higher at Rs 122.90 against its previous close of Rs 119.95. The stock gained 3% to hit the day's high of Rs 123.55 on BSE. The stock also hit an intraday low of Rs 120.35 during early trade.

NMDC stock is trading higher than 5, 20, 50, 100 and 200-day moving averages. The stock rose 7.9% in the last 4 days.

Market capitalisation of NMDC stood at Rs 36,987.14 crore as of today's session. NMDC stock has touched a 52 week high of Rs 139.50 and a 52-week low of Rs 62. The stock has fallen 0.12% in one month. However, it has risen 5% since the beginning of the year and 14% in one year.

"This is to inform that after obtaining the lease extension of Donimalai Iron Ore Mine (ML-2396) for 20 years with effect from Nov. 3, 2018, from the government of Karnataka and completing the associated statutory requirements, the Donimalai iron ore mine," a filing with the stock exchanges said.

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