Shares of Gujarat NRE Coke traded lower in a buoyant market Tuesday after Australia passed a new law imposing 30 per cent tax on iron-ore and coal mining profits. The Australian government will get $11 billion in taxes in three years because of this legislation.
Gujarat NRE Coking Coal (GNM) operates two adjacent underground hard coking coal mines in Australia. Gujarat NRE Coke holds nearly 77 per cent of GNM. GNM sells almost all of its production as Run of Mine (ROM) coal to the parent company (Gujarat NRE Coke) under a contract.
At 1040 hours, shares of the company traded over 3 per cent lower at Rs 23.15 on the Bombay Stock Exchange. The BSE Sensex was up 105 points or 0.6 per cent at 17,378.
The tax will affect about 30 companies, including global miners BHP Billiton and Rio Tinto.
The Minerals Resource Rent Tax passed in the upper house is likely to become a law on 1 July.
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