Strategic Groundwork: Prism Johnson Named Preferred Bidder For Hinauti-2 Limestone Block In Madhya Pradesh

Prism Johnson Ltd has been declared the preferred bidder for the grant of a mining lease for the Hinauti-2 limestone block located in Madhya Pradesh, marking a significant step in the company’s long-term raw material security strategy. The announcement was made by the Directorate of Geology and Mining, Mineral Resource Department, Government of Madhya Pradesh on September 19, 2025, and formally disclosed by the company to stock exchanges in compliance with SEBI regulations.

 

The limestone block, situated in Piparhat and Kubri villages of Maihar Tehsil, spans over 203.82 hectares and holds an estimated reserve of 45.21 million tonnes. This development is expected to strengthen Prism Johnson’s cement manufacturing operations by ensuring a stable and cost-effective supply of a key input material.

 

Key Highlights From The Mining Lease Declaration

 

- Prism Johnson declared preferred bidder for Hinauti-2 limestone block  

- Block located in Piparhat and Kubri villages, Tehsil Maihar, District Maihar, Madhya Pradesh  

- Total area of 203.82 hectares with estimated limestone reserves of 45.21 million tonnes  

- Lease awarded by the Directorate of Geology and Mining, Government of Madhya Pradesh  

- Strategic move to secure raw material supply for cement production  

 

Location And Resource Profile

 

The Hinauti-2 block is strategically positioned in the mineral-rich Satna-Maihar belt of Madhya Pradesh, a region known for its high-grade limestone deposits and proximity to major cement manufacturing clusters. The block’s geological profile and reserve volume make it a valuable asset for Prism Johnson, which operates integrated cement plants in the region.

 

Key attributes of the block include:

 

- High-quality limestone suitable for clinker production  

- Accessibility to existing transport infrastructure including rail and road networks  

- Favorable topography for open-cast mining operations  

- Minimal forest or ecological encumbrances based on preliminary assessments  

 

Operational Significance And Strategic Fit

 

Limestone is the primary raw material in cement manufacturing, and securing captive sources is critical for cost control and production continuity. Prism Johnson’s preferred bidder status for the Hinauti-2 block aligns with its strategy to reduce dependence on third-party suppliers and enhance vertical integration.

 

Operational advantages include:

 

- Long-term raw material security for existing and future cement units  

- Potential reduction in input costs and freight expenses  

- Improved planning for capacity expansion and product diversification  

- Enhanced control over quality and supply chain timelines  

 

Next Steps And Regulatory Pathway

 

While being named the preferred bidder is a key milestone, Prism Johnson must now complete several formalities before the mining lease is officially granted. These include:

 

- Submission of performance security and upfront payments as per auction terms  

- Execution of Mine Development and Production Agreement (MDPA)  

- Environmental and forest clearances from relevant authorities  

- Final grant of mining lease and commencement of operations  

 

The company is expected to initiate these steps in Q4 FY25, with operational mining likely to begin in FY26 subject to regulatory approvals.

 

Market Impact And Investor Sentiment

 

The announcement has been positively received by market participants, with analysts viewing the development as a long-term value driver for Prism Johnson’s cement business. The company’s stock showed modest gains following the disclosure, reflecting investor confidence in its resource acquisition strategy.

 

Key investor themes include:

 

- Strengthened raw material base and cost efficiency  

- Improved earnings visibility in the cement segment  

- Strategic alignment with infrastructure and housing demand in central India  

- Enhanced competitiveness against peers with captive limestone assets  

 

Outlook And Expansion Potential

 

With the Hinauti-2 block under its belt, Prism Johnson is well-positioned to pursue further expansion in its cement operations. The company may explore:

 

- Capacity augmentation at its Satna and Maihar plants  

- Entry into new regional markets with assured supply  

- Development of value-added cement products leveraging raw material quality  

 

Sources: ScanX News, Prism Johnson Disclosure to Stock Exchanges, Environment Clearance Portal — Pre-Feasibility Report