District Mineral Foundation to hit steel producers hard
The Dollar Business Bureau The EBITDA/t (earnings before interest, tax, depreciation and amortization divided by total revenue) for the top six steel producers is expected to come under further stress in view of the stipulated additional contribution by iron ore miners towards District Mineral Foundation (DMF) under the new Mines and Minerals (Development and Regulation) (MMDR) Amendment Act 2015. Consequently, the gross leverage of top six steel producers in India could increase marginally, said a credit rating agency report. The possibility of debt levels moderating in FY16 remains low as most players have on-going expansion plans. The proposed contribution to DMF will be in addition to the royalty already being paid by miners. Though the contribution towards DMF could ...
Mining Amendment Act to simplify procedures, avoid delays
The Dollar Business Bureau The Steel & Mines Minister, Narendra Singh Tomar, on Thursday, said the Mines and Minerals Development and Regulation (MMDR) Amendment Act will simplify the procedures and avoid delays in mining sector. Addressing the media, the Union Minister informed that once the Act is notified in a week’s time, the States will be provided with the draft rules of the Act to go ahead with the simplified mining procedures. The Union Minister further informed that the States will no longer have to wait for the Centre’s approval for a mining process, as the Act (Section 5(2)(b)) allows the State Governments to devise a system for filing of a mining plan avoiding the need for prior approval ...
