Vedanta Ltd, India’s largest private miner, today led resumption of iron ore production at Goa after a three-year ban as the top ore exporting state looks to regain lost glory. And I assure you that with the support of the government, we will put our best efforts to make the economics work for all to ensure our operations bring in economic and social improvements.
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“We waited for three years for this day”. We continue to work with central and state government to improve competitiveness of Indian exports, ‘ it said.
The government has since cut export duty on low-quality ore to 10 per cent from 30 per cent, mainly to help companies sell Goa’s ore, which contains less than 58 per cent iron.
A number of other mining companies like Fomento, Chowgules, VM Salgaocar, Bandekars etc have already obtained or are in the process of getting their final clearances to resume mining operations but are awaiting the abatement of monsoons to start mining. “Due to this, you can expect softness in pricing”, said Kumar, whose company has managed to get nod for five of its mining leases.
Iron ore production is now capped at 20 million tonnes per annum in the state.
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. Goa mines were the companys flagship iron ore business.
The resumption of mining will resume the employment of many mining dependent people, the government will benefit from increased revenues and communities will be empowered, ” Kishore Kumar, CEO, Vedanta’s Iron Ore Business, said on the occasion. If they still fail, I will order them to do so, if needed, We can say that Acche Din has begun for the mining sector, I feel achche din have started, We faced the wrath of mining closure for last three years.
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The Goa government had temporarily banned iron ore mining in September 2012 pending verification of documents in the wake of Justice M B Shah Commission’s report. Since the ban on mining was imposed in 2012, Vedanta shares have fallen 26.16 per cent. It lifted the ban in April last year, but with conditions.
