Vedanta resumes iron ore operations in Goa after 3 yrs ban

India’s top iron ore exporting state of Goa resumed production on Monday after almost three years and could hit its court-set annual limit of 20 million tonnes this fiscal year itself, its mines director told Reuters.

Vedanta resumed operations with a ceremonial opening at its Codli mine, heralding the return of a once-big exporter just when iron ore prices are inching up after hitting a decade-low in July. “Due to this, you can expect softness in pricing”, said Kumar, whose company has managed to get nod for five of its mining leases.

Codli mine which was Asia’s largest mining site before it was shut down has the extraction capacity of 3.1 million tons. “It will require close cooperation among the industry, the government and other stakeholders to ensure that we can reopen on a competitive basis”, he said.

“But Vedanta advanced the date of resumption to August”.

However, he said it would be beneficial for Vedanta in the long run once demand starts picking up. “We have given all the clearances and now it is for them to start the mining”, Parsekar said. However, still experts say Accountant General’s quetioning about lease renewals may give a different twist to the tale of mining in the state.

In a concall with reporters, Vedanta CEO Tom Albanese said: “We need to work hard to regain market share in a very difficult market”.

“I would appeal to mine owners that even though the worldwide market is not stable for Goa’s low grade ore, mining may be resumed in October this year, in the interest of State, workers and to eradicate unemployment”, Parsekar said on the Floor of the House. The Company produces oil & gas, zinc, lead, silver, copper, iron ore, aluminium and commercial power and has a presence across India, South Africa, Namibia, Ireland, Australia, Liberia and Sri Lanka. So, our cost management whether in the taxation duty, or mining or logistics… Together we can win back the market and confidence to truly explore the potential of the iron ore industry in Goa and in India, ” he added. Vedanta has produced 0.6 million tonnes of iron ore generating an operating profit of Rs 135 crore.

Vedanta Resources Plc is a London-listed diversified global natural resources company.