Mining tax not a problem for at least 5-7 yrs: Guj NRE Coke

Speaking to CNBC-TV18, Arun Kumar Jagatramka of Gujarat NRE Coke says that the contours of the mining tax are such that it will not impact new companies with large capex such as theirs.
  • Language
  • App
  • Subscriptions
  • Specials
  • Sign-In
  • Register
GeStepAhead Masteryourmoney Earnings
moneycontrol.com

Home » News » Business

Mar 20, 2012, 06.27 PM | Source: CNBC-TV18

Mining tax not a problem for at least 5-7 yrs: Guj NRE Coke

Speaking to CNBC-TV18, Arun Kumar Jagatramka of Gujarat NRE Coke says that the contours of the mining tax are such that it will not impact new companies with large capex such as theirs.

Like this story, share it with millions of investors on M3

Mining tax not a problem for at least 5-7 yrs: Guj NRE Coke

Speaking to CNBC-TV18, Arun Kumar Jagatramka of Gujarat NRE Coke says that the contours of the mining tax are such that it will not impact new companies with large capex such as theirs.

Post Your Comments

Share Cancel

Midcap Radar

Excerpts from Midcap Radar on CNBC-TV18 Watch the full show »

In a knocker for mining companies that operate mines in Australia, the Australian senate has pushed through into law, a 30% tax on iron ore and coal mining companies. While this is aimed at rising nearly USD 11.2 billion for the exchequer, Indian players such as Gujarat NRE Coke could see a cut at the bottomline.

While the tax imposition was still under discussion, Arun Kumar Jagatramka of Gujarat NRE Coke had estimated a rough net impact of USD 5 million. However, speaking to CNBC-TV18 today, he says that the contours of the mining tax are such that it will not impact new companies with large capex such as theirs. “This mining tax is on the super profits as calculated after deducting all the expenses as well as capital expenditure,” he explains. “State royalties are also deductible,” he says.

Also read: Mining tax may push coal cost to record high

According to Jagatramka, no impact is expected on Gujarat NRE Coke for at least the next five-seven years, and even after that, it will be dependent on the profits the company makes.

The stock nonetheless reacted to the news today, tanking 2.51% to Rs 23.

Overall, this 30% tax could see a pass-through in coal prices, says Jagatramka. "Part of this tax could be passed on and coking coal prices could go into a new higher territory," he says.

Ads by Google

Buy, Hold, Sell ? Hear it first on M3
Mining tax not a problem for at least 5-7 yrs: Guj NRE Coke

See all

Get started using your favorite social network

or

Login using moneycontrol ID

Username
Password

Need help logging in? Reset password.

Don´t have an account? Sign Up

Get started using your favorite social network

or

Simply sign up using this short form

* mandatory

UserName*

Username should be atleast 4 character

Password*

Password should be 8 or more characters,
atleast 1 number, 1 symbol & 1 upper case letter

Alert

Your Password should contain
  • 8 or more characters
  • At least 1 number
  • At least 1 symbol
  • At least 1 upper case letter
Confirm Password*
Email
Already have an account? Login