The stock of Sandur Manganese & Iron Ores today hit a upper circuit of 5 per cent after the company got approval from the Supreme Court to resume its mining operations in Karnataka, subject to a few environmental conditions.
The stock jumped to Rs 471.45 or Rs 22.45 over the previous day’s close.
The company informed the BSE that a joint committee constituted by the Supreme Court had extensively surveyed 116 mining leases in Karnataka for any irregularities.
Subsequently, the apex court lifted the ban on 18 mining leases, which include the ones held by Sandur Manganese & Iron Ores, the company said in a filing to the BSE.
The Supreme Court has directed the Karnataka Government to scale down iron ore production from 82.97 million tonnes per annum to 30 mt from Bellary, Tumkur and Chitradurga districts, the company said.
Consequently, the company said it has been directed to restrict its production of iron ore to 0.74 mt a year and manganese ore at 0.19 mt.