Shyam Metalics secures mining rights for Phutamura coal block; check stock reaction

Shyam Metalics and Energy Ltd shares were trading marginally lower in Tuesday's trade after the company announced that its investment in Alom Solar Private Limited had helped secure strategic mining rights for the Phutamura coal block in Chhattisgarh, as the group looks to strengthen backward integration and ensure long-term fuel security.

Located in the Mand-Raigarh coalfield in Raigarh district, the coal block spans approximately 7.324 square kilometres and has estimated reserves of around 170 million tonnes. Mining operations and coal production are expected to commence in July 2027, the company said in a press release on October 13.

Shyam Metalics shares opened at Rs 1,099.90 and touched a high of Rs 1,099.90, up 0.99% from the previous close of Rs 1,089.10. The stock also touched a low of Rs 1,072.50.

Shyam Metalics: Why the Phutamura coal block matters

The company said securing the coal block is a strategic backward integration initiative aimed at ensuring a stable, long-term and cost-effective coal supply for its captive power generation and steel manufacturing operations. Access to raw material reserves is expected to strengthen operational self-sufficiency and reduce dependence on external coal supplies.

Commenting on the development, Brij Bhushan Agarwal, chairman and managing director of Shyam Metalics and Energy, said, "Our Groups investment in Alom Solar Private Limited and the securing of the Phutamura Coal Block marks a pivotal milestone in our strategic journey toward absolute self-reliance."

He added that securing long-term raw material linkages was important as the company expands its manufacturing capabilities. "With an estimated 170 million tonnes of coal reserves in the Mand–Raigarh coalfield, this development significantly strengthens our backward integration framework, ensuring uninterrupted fuel security for our captive power plants and core steel operations," Agarwal said.

About Shyam Metalics

Shyam Metalics is an integrated metal-producing company with operations across steel products, ferro alloys, aluminium and stainless steel. It has an aggregate installed metal capacity of 16.93 million tonnes per annum across the steel value chain, supported by 467 MW of installed captive power capacity.