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Business News/ Industry / Manufacturing/  Vedanta’s Sesa Iron Ore to make all mines operational in Goa
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Vedanta’s Sesa Iron Ore to make all mines operational in Goa

Sesa Iron Ore's CEO Kishore Kumar says the firm will ramp up the 11 remaining leases post October

The mining industry in Goa had come to a standstill for more than two-and a half year following a Supreme Court order to curb illegalities. Photo: BloombergPremium
The mining industry in Goa had come to a standstill for more than two-and a half year following a Supreme Court order to curb illegalities. Photo: Bloomberg

Panaji: Sesa Iron Ore, a subsidiary of Vedanta Resources Inc., expects to make all its mines operational in Goa post monsoon.

“Out of the 21 (mining) leases granted to us by the government, 10 are operational and have been ramped up since August 2015. Post-October, we will have to ramp up the remaining ones," Sesa Goa Iron Ore’s chief executive officer Kishore Kumar told PTI in an interview ahead of Vedanta’s annual general meeting on 29 June, in Goa.

Environment Clearance Limit for the company is 5.5 million tonnes spread over all the leases, he said. “It will be important for us to get our small leases also back in operation to achieve the limit. During the last financial year, our extraction was close to 3.2 million tonnes," Kumar said.

The mining industry in Goa had come to a standstill for more than two-and a half year following a Supreme Court order to curb illegalities. Subsequently, the industry was in fear that it will lose trust of its buyers. Kumar said the trust of the steel mills, who are buyers for Goa’s low grade iron ore is resuming partially.

“Goan ore being low grade has a lower price. Also, it has got some value in terms of phosphorous material. It does help in a way in terms of marketing this product to China and we will continue to have that edge of cheap raw material for Chinese steel mills," he said.

“Since the price of steel and iron ore has been slipping over the last six quarters, the advantage remains that margins will remain squeezed for steel mills and they will look out of cheaper row material," he added.

Kumar further said, “We are in cyclical commodity business. We are going through a rough patch at the moment. Not only us, but entire world is going through a rough patch in terms of commodity prices being low," he said.

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Published: 25 Jun 2016, 05:55 PM IST
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