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India Resources instructed to stop work

India Resources instructed to stop work

Photo by Bloomberg

9th September 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – The share price of ASX-listed India Resources was instructed by Indian government-owned Hindustan Copper to stop nonessential production and development operations at the Sudra copper mine.

The directions came after the Indian Supreme Court in May limited the number of lease extensions that could be obtained without a licence renewal, resulting in amendments to the mineral concession rules that the state government was enforcing against mines that continued to wait on the renewal of their licence.

The instruction not only affected the Sudra copper mine, but also dozens of iron-ore mines.

India Resources told shareholders on Tuesday that it was unsure how long the stop work instructions would be maintained at the Sudra mine.

The junior’s shares were trading at a low of A$0.006 a share on Tuesday, down from an opening price of A$0.007 a share. Later in the day the stock recovered to A$0.007 a share.

Edited by Creamer Media Reporter

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