Birla Corp to seek limestone, coal mining rights in Ethiopia

Birla Corporation shareholders forced a ballot at the company’s 92nd AGM here on Thursday.

The six proposed resolutions including reappointment of Mr H.V. Lodha, the current chairman of the company, were put to vote after a four-and-a-half hour deliberations on the accounts, auditing and corporate governance issues.

The ballot results, announced later, showed that all the ordinary resolutions were, however, carried with majority.

The promoter holding in the company is placed at 60.92 per cent. Among minority shareholders, LIC only has over five per cent.

Mr Lodha said the company was contemplating legal move against a stay on limestone mining operations at Chanderia in Rajasthan.

According to him, operations at the company’s Chanderia unit has severely affected the overall performance of the company. Currently, limestone was being procured from distant areas incurring additional cost.

The MP Birla Group company has two of its six cement plants at Chanderia in Chittorgarh district. In a recent judgment of the Rajasthan High Court, it disallowed mining activities within 10 km from Chittorgarh fort wall.

He said the company sought limestone and coal mining rights in Ethiopia. It has also set up a wholly-owned subsidiary in the African country.

Mr Lodha told that the company has received prospecting licence for limestone and was awaiting prospecting licence for coal bearing areas.

Through the subsidiary — Birla Corporation Cement Manufacturing Plc — the company wants to set up a cement manufacturing unit with a coal-fired power plant.

The Birla Corporation stock dipped 1.5 per cent on the BSE to close at Rs 226.25 on Thursday.

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