Star Cement has been declared as the 'preferred bidder' for the mining lease for Boro Lakhindong (West Block), District Dima Hasao in e-auctions conducted by the Government of Assam. According to reports from Business Standard, the block is situated in Boro Lakhindong Village, Umrangso Tehsil, Dima Hasao District, Assam. The company will now proceed to finalize the lease agreement with the Assam government.
The awarded block spans 123 hectares with an estimated limestone resource of 207.822 million tonnes. As reported by Business Standard, this significant resource base will substantially enhance Star Cement's raw material security for its cement manufacturing operations. The resource magnitude provides visibility for clinker capacity beyond existing 5.7 MTPA levels, with the 207.82 million tonne estimate ensuring clinker production for several decades at current utilization rates. This strategic resource locking strengthens Star Cement's competitive moat against competitors entering the geographically isolated but high-margin North-East market.
For Star Cement, which already enjoys a ~25% market share in the North-East, this win is not just about growth but about defending its premium margin profile. By locking in over 200 million tonnes of limestone, the company minimizes the risk of raw material inflation and regulatory bottlenecks in the future. The company recently operationalized its 2 MTPA grinding unit in Guwahati, bringing its total capacity closer to 9 MTPA. By controlling a 123-hectare mine locally, Star Cement can maintain lower clinker production costs compared to competitors who may have to transport raw materials over longer distances into the North-East.
Star Cement demonstrated strong financial performance in Q4 FY26, with consolidated net profit rising 20.24% to ₹148.10 crore compared to the same period in the previous year. According to Business Standard, revenue increased by 11.54% to ₹1,173.55 crore in Q4 FY26 over Q4 FY25. The company's stock price rose 0.36% to currently trade at ₹212 on the BSE, reflecting positive market sentiment following the mining lease announcement. The resource win provides raw material security for Star Cement's clinker production for over 40-50 years, depending on the extraction rate, significantly de-risking its long-term operational model.
