Vedanta shares fall on likely suspension of Goa mining operations

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New Delhi | Updated: December 18, 2015 4:42:43 PM

Shares of Vedanta fell over 2 per cent intra-day on Friday after the company announced that its arm Sesa Goa may suspend iron ore mining in Goa due to the ongoing dispute between the firm and truck operators.

VedantaShares of Vedanta fell over 2 per cent intra-day on Friday after the company announced that its arm Sesa Goa may suspend iron ore mining in Goa due to the ongoing dispute between the firm and truck operators. (Express Photo)

Shares of Vedanta fell over 2 per cent intra-day on Friday after the company announced that its arm Sesa Goa may suspend iron ore mining in Goa due to the ongoing dispute between the firm and truck operators.

At 12:35 pm, Vedanta share price was trading 1.78 per cent down at Rs 85.60. The scrip opened at Rs 86.25 and had touched a high and low of Rs 86.50 and Rs 84.95, respectively in trade so far. Later, the share price of the company closed 3.21 per cent down at Rs 84.35.

“A section of truck owners’ association is demanding a rate of Rs 17.63 per km while the mining firms, already reeling under the impact of a meltdown in iron ore prices and plethora of taxes, have offered to pay Rs 8 per km,” the firm said in a statement.

If mining is suspended, this will be a huge set back to the mining operations in the state that had resumed only in August this year after Supreme Court lifted its 2012 ban, the statement added.

At present, Vedanta is the only miner that has restarted operations in Goa.

In the past one year, the share price of Vendata slid 56.61 per cent to Rs 87.15 on December 17. Sensex fell 3.39 per cent during the same period.

The promoters holding in the company stood at 59.52 per cent while institutions and non-institutions held 22.99 per cent and 17.49 per cent respectively.

For the quarter ended September 30, 2015, the company posted a consolidated net profit of Rs 973.97 crore, down 39.85 per cent, against Rs 1,619.29 crore in the corresponding quarter a year ago.

(With inputs from PTI)

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