Shares of Shyam Metalics and Energy Ltd surged 4% on 27 March after the company announced receiving a composite licence for the Surjagad-1 iron ore block in Maharashtra.

The Letter of Intent was awarded to Natural Resources Energy Private Limited (NREPL), the company’s joint venture business. Dorite Tracon Private Limited, a promoter company of Shyam Metalics and Energy Limited, holds 49% of the economic stake in NREPL.

The aforementioned composite licence covers the Surjagad 1 Iron Ore Block, which spans 1,526 hectares and is located in the districts of Gadchiroli, Etapalli Taluka, Ramunkal Meta, Puske Meta, and Angudra.

NREPL shall meet all requirements to get the final composite licence from the Maharashtra government during the one-year term that the LoI is effective from the date of issuance.

B Bhushan, VCMD, Shyam Metalics and Energy Limited, said, “This milestone LOI is a testament to the collaborative efforts between Shyam Metalics through its promoter company and Sarda Energy & Minerals Ltd.”

Bhushan added, “It reinforces our shared vision for growth and development within Maharashtra’s mining sector. We are committed to responsibly utilising this opportunity to create value for all stakeholders while adhering to the highest environmental and safety standards.”

The company made an announcement last week about its entry into a greenfield growth project that will concentrate on flat-rolled aluminium goods. The group plans to invest an astounding Rs 450 crore in it, which will also help the group expand its capacity.

At 3:15 pm, the shares of Shyam Metalics were trading 0.87% higher at Rs 605.10 on NSE.