The Karnataka government’s plan to tax mines and mining land put pressure on the shares of NMDC Ltd. and other steel businesses on December 18, according to CNBC. The majority of the sell-off was concentrated on National Mineral Development Corporation Limited, whose shares fell 6% to Rs 213.49 per by 12:30 pm, the largest decline in 18 weeks. Additionally, other steel stocks, such as JSW Steel and SAIL, suffered decreases of 2% and 1.74%, respectively, as rumors of an increase in iron ore duties surfaced.
Karnataka’s Mining Tax Bill and Its Implications
A law to tax mines and mining land has been filed by the Karnataka administration, which is governed by Siddaramaiah. The law reportedly calls for a tariff of between ₹20 and ₹100 per tonne for a variety of minerals, which could bring in ₹4,207.95 crore a year, plus an extra ₹505.9 crore from land-bearing mineral taxes. According to reports, the state government is anticipated to make a decision shortly after the draft of the higher iron ore duty circulated lately.
The Karnataka (Mineral Rights & Bearing Land) tax bill was adopted by the Karnataka cabinet last week. The state government wants to collect more than ₹10,000 crore in iron ore duty this year because Karnataka is the largest producer of iron ore and holds 78 percent of India’s total reserves. Karnataka contributes significantly to NMDC’s operations, making up around 35% of the company’s total output mix.
About the Company
The Indian public sector company NMDC Limited, formerly known as the National Mineral Development Corporation, is engaged in the exploration of various minerals, including coal, iron ore, copper, rock phosphate, limestone, dolomite, gypsum, bentonite, magnesite, diamond, tin, tungsten, graphite, and others. With over 35 million tonnes of iron ore produced from three automated mines in Chhattisgarh and Karnataka, it is the biggest producer and exporter of iron ore in India. Additionally, it runs the nation’s sole automated diamond mine in Madhya Pradesh’s Panna.
