Anil Ambani-controlled Reliance Natural Resources [Get Quote] has secured licences from the Madhya Pradesh government to mine around 9 millon tonne limestone annually from four mines for its proposed cement plant in the state.

RNRL is setting up a 10-MT capacity cement plant in the state's Satna district at an investment of Rs 5,000 crore. According to company sources, mining at the four sites will be allowed until the completion of the plant life that would be between 40 and 50 years.

The Anil Dhirubhai Ambani Group company will use the fly ash, a by-product of burning coal for power, from its Sasan ultra mega power plant for cement-making.

For the coal linkage, it has applied to the Madhya Pradesh government and power is expected to be sourced from the state-run utility. The company requires 1.8 MT coal and 1,000 million unit power for the greenfield project.

RNRL plans to set up one more 10 MT greenfield cement plant in the country. Both the plants are expected to be operational by 2012.

The 20-MT capacity would catapult ADAG into the third spot in the pecking order of the cement industry, after ACC and Grasim [Get Quote], and give it a market share of around 10 per cent.

For supporting its ambitious cement and steel businesses, RNRL is looking to run shipping service also. It will help the company in transporting raw materials and finished products.

At present, RNRL is engaged in sourcing, supply and transportation of various fuels along with exploration, production and distribution of gas.

RNRL shares were marginally down on Thursday and closed at Rs 77.05 as against Rs 77.10 on Wednesday.