Iron ore story may become like coal story.
Despite having one of biggest coal reserves, there is coal shortage in India. Pvt companies have to import coal from Australia and Indonesia at much higher rates.
This may play out in Iron ore in a decade- other companies mines including tata steel have their lease end date in 2030. Sandur manganese iron ore mine lease is also ending in 2033.
GPIL mines lease license will last till 2055.
While iron ore price is pretty cheap in India due to very high export duties, but if we have to import iron ore, we will have to import at Rs. 8500 a ton plus logistic costs.
Govt can’t reduce price of imported iron ore.
GPIL will increase capacity by 4x in 6 yrs.
Imagine the profits in 10 yrs from now!
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