The coal mining sector in India has grown in strength and share price over the past week. On Wednesday, Prakash Industries Limited reported a share price of £1.38, registering a 52-week high on the British Stock Exchange (BSE).
Coal and steel mines gain traction in India and Europe
The company, which specialises in coal and steel mining and production and supply chain, particularly in Chhattisgarh, climbed 5% due to backing from its new commercial mine in Bhaskarpara. Its stock gained 6.34% in the last week and 53.56% in the last month.
The new Stage-1 commercial project is currently waiting for the approval of many of India’s environmental bodies. India’s Ministry of Environment, Forest and Climate Change have recently approved the project through the Forest (Conservation) Act, 1980. Likewise, the company has been granted Environmental Clearance from the Government of India.
According to a Prakash Industries representative, the coal supplies from the new mine will provide stability to the company’s integrated steel operations as well as significant cost reductions.
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The STOXX Europe 600 mining index has become the worst-performing sector and experienced a fall of 15%; however, the unfavourable industry has garnered interest from Chinese investors hoping to pump new stratagems into dormant projects. Analysts against the collaboration between Beijing’s economy and the wider STOXX 600 forecast that the Chinese economy will grow by only 5% this year despite being the second-largest global economy.
Coal and steel production seems to be more favourable above copper and iron extraction, which is stagnant on the London Metal Exchange at $8,380 a tonne.
