1. Vedanta expects Goa to export 20 mn tonnes iron ore in FY17

Vedanta expects Goa to export 20 mn tonnes iron ore in FY17

Mining conglomerate Vedanta Ltd expects that Goa will export around 20 million tonnes of iron ore in the current fiscal.

By: | New Delhi | Published: October 4, 2016 6:09 PM
In terms of Vedanta's cap of 5.5 million tonnes, Kumar said: "We have exported 2.2 tonnes and will export the rest in this fiscal." (Reuters) In terms of Vedanta’s cap of 5.5 million tonnes, Kumar said: “We have exported 2.2 tonnes and will export the rest in this fiscal.” (Reuters)

Mining conglomerate Vedanta Ltd expects that Goa will export around 20 million tonnes of iron ore in the current fiscal.

Goa produces low grade iron ore (Fe content below 58 per cent), which is exported to China. After removal of the mining ban by the Supreme Court in 2014, the state is allowed to mine 20 million tonnes, with the highest share of 5.5 million tonnes going to the firm led by billionaire Anil Agrawal.

“We expect the state to export about 20 million tonnes of iron ore in this fiscal, which also includes the opening stocks that were left before mining started in Goa last year,” CEO of Vedanta’s Iron Ore business Kishore Kumar told PTI.

Since the resumption of mining operations in Goa, the state has exported about 5 million tonnes of ore, which includes both the old as well as the freshly mined stock, he added.

In terms of Vedanta’s cap of 5.5 million tonnes, Kumar said: “We have exported 2.2 tonnes and will export the rest in this fiscal.”

Vedanta mines iron ore in Goa from the Codli and Sonshi mines. It also has a met coke and pig iron plant, besides a captive power plant in the state.

The firm maintained a monthly production run rate of 8 lakh tonnes in the April-June quarter this fiscal. During the quarter, Vedanta produced 2.4 tonnes ore and exported 2.1 million tonnes. This is against a production of 1.9 million tonnes and sales of 1.6 million tonnes in the January-March quarter of 2015-16.

The mining giant feels that the worst phase for the iron ore industry is over and exuded confidence that its Goa arm is prepared to sustain the export momentum amidst softening global prices and subdued demand.

“Goa iron ore industry went through a lot, but the worst is over. Globally, prices are soft and demand is subdued, but we will find traction. We competed in similar environments earlier and will do it again. The future of mining is intact,” Kumar had said earlier.

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