Vedanta Ltd plunges despite bagging West Coal Block in Odisha

Vedanta Limited emerged as the highest bidder for the West Coal Block at Radhikapur, located in Angul district of Odisha. The west coal block is at a distance of 190 kms from the company's Jharsuguda aluminum smelter. The announcement was made on Wednesday after the market hours. 

The coal block seems to be a choice fit for Jharsuguda smelter, looking at the logistical location and annual capacity. The mine records are set to have a total reserve of 312 million tonnes and an approved per annum extraction capacity of 6 million tonnes. It is expected to provide fuel security, enhance power availability as well as strengthen the company's aluminum and power operations & performance. 

Vedanta Limited falls in the category of natural resource company, which is engaged in the manufacture of copper & copper products along with aluminum & aluminum products. Their major products are zinc-lead-silver, iron ore, steel, copper, aluminum, power, oil & gas. The company carries its iron ore mining operations in the states of Goa and Karnataka whereas their copper business consists of custom smelting. Its power business consists of 2,400-megawatt thermal coal-based power facility in the state of Odisha. 

At 10.16 am on Thursday, Vedanta Limited was trading at Rs 161.15, down by 0.56 per cent. Its 52-week high is Rs 170.50 while the 52-week low is Rs 60.30 on BSE.