PSU MINING COMPANY WINS BID FOR RARE EARTH EXPLORATION

PSU mining company

has been declared the preferred bidder by the Ministry of Mines for the Ontillu-Chandragiri rare earth element (REE) exploration block in Andhra Pradesh. This development follows a notice inviting bids to a tender issued by the ministry on 30th Mar 2025. The mining block spans an area of 209 ***** and the award entails the grant of an exploration licence under the Mines and Minerals (Development and Regulation) Act, 1957. The exploration licence deed is required to be executed within one year of issuance of the letter of intent by the respective state government. Having a market capitalization of Rs 2,42,812 crore, the company's stock price is trading at an attractive P/E of 7.39. Moreover, it has a decent ROE and ROCE of 48% and 38.9% respectively. Any breakout above levels of Rs 400-405 per share could suggest a strong momentum for the stock.