Vedanta resumes iron ore mining in Goa, looks to regain export market
Mining firm Vedanta on Monday resumed operation in the iron ore mines of Goa after getting approvals to extract 5.5 million tonnes of minerals. The mining operation had been stalled in the state since 2012. “The company has received the relevant consent, licence and approvals in place to commence the iron-ore mining operations in the state of Goa for some of its leases. The company is likely to recommence operations from August 10, 2015 at its biggest mine at Codli in Sanguem taluka in Goa,” Vedanta said in a statement. The Supreme Court in October 2012 had banned mining activities in Goa in response to a petition over alleged irregularity. In April last year, the apex court allowed mining up to 20 million tonnes of total annual output. Goa is India’s third largest iron ore producing state. Ores extracted from the state are of low-grade and the entire output is sold overseas at cheaper rates due to the lack of demand in the domestic market. But falling prices of iron ore in the global market and restrictions on mining activities have hampered India’s export in the past three years. Now with resumption of mining, Vedanta said that even though the international market of iron ore is weak, India can restore its position in exports. Till date, five mining plans of Vedanta have been cleared by the Indian Bureau of Mines and clearance over 15 others is awaited. Goa’s Codli mine has the capacity of more than 3 million tonnes. The company said that the pending approvals are expected to come by the end of monsoon and mining will resume full scale post-monsoon, giving a boost to India’s export business. “Even as India and in particular miners from Goa look to regain lost markets, Iron ore markets/prices are weak and the international trade environment remains challenging. We continue to work with central and state government to improve competitiveness of Indian exports,” the company said. Till 2012, India was the third largest iron ore exporter and Vedanta Ltd was the largest exporting firm. Last year, the country’s total export value reduced to $0.56 billion, down 63.6% from $1.55 billion in 2013-14.
August 10, 2015 | 4:14pm IST.
to success.