A look to see whether the scrip is worth a buy at this price. Regional exploration is undertaken by the GSI and the detailed exploration is undertake by MEC and the state level agencies. GMDC is the only body undertaking mining of lignite in Gujarat. It is also used as a feedstock for making urea and methanol. It finds application in chemical and metallurgical industries as coke.
Raw lignite is used in cement and other industries.
It is estimated that demand from the power, textiles, chemicals and cement sectors, which are the major users of lignite, will be around 54 metric tonne by the turn of the century. The problem with lignite mining as with any other type of mining is the disturbance to ecology. The major pollution impact of open cast mining are land degradation, soil erosion, air, water and noise pollution, disturbance to flora and fauna and the population in the project area. The company has engaged Gujarat Ecology Commission to prepare a blue print for long term approach to the problem. Lignite mining is GMDC's main business, having contributed 94 per cent of the turnover in 1996-97.