Vedanta today said it has received necessary government approval and will resume operations from today at its biggest iron ore mine at Codli in Sanguem taluka in Goa.
“The company has received relevant consent, licence and approval to commence iron ore mining operations in Goa for some of its leases. The company is likely to recommence operations from August 10, 2015, at its biggest mine at Codli in Sanguem taluka in Goa,” Vedanta Ltd said in a BSE filing.
Further, it said it “has been granted approval for a total extraction of 5.5 million tonnes, of which Codli has 3.1 million tonnes. Till date, five plans and schemes for company’s mines have been cleared by the Indian Bureau of Mines and we are awaiting clearance for further 15 plans’’.
“Over the balance monsoon period, we anticipate receiving these approvals and expect a full scale resumption, post monsoon,” Vedanta added.
The company stock was trading down by 0.12 per cent at Rs. 129.30 on the BSE at 11.45 am local time.
However, expressing caution over iron ore prices, Vedanta said: “Even as India in general and miners from Goa in particular look to regain lost markets, iron ore markets/prices are weak and the international trade environment remains challenging. We continue to work with the central and state governments to improve competitiveness of Indian exports.”
Goa Chief Minister Laxmikant Parsekar formally launched the mining operations at Codli mines, 100 km away from here.
Though the resumption of mining was announced today, the actual extraction of ore will start only after the monsoon season gets over next month.
Parsekar said the resumption of mining is an indication of “Acche Din’’.
“We can say that Acche Din has begun for the mining sector. We faced the wrath of mining closure for last three years. Government has tried to do best to help people affected with mining closure,” the Chief Minister said.
“Government will give all possible help for the mining sector. We are aware about the problems faced by mining dependents,” he stated.
Parsekar said that the State Government has already announced that mining would resume in October this year.
“But Vedanta advanced the date of resumption to August. This is a welcome step,” he said.
The Chief Minister said that rest of the mining companies should start operations in October.
“If required, we will order the mining companies to restart the mines. We have given all the clearances and now it is for them to start the mining,” Parsekar said.
Codli mine, which was Asia’s largest mining site before it was shut down, has an extraction capacity of 3.1 million tonnes.
“We waited for three years for this day. We were waiting for our mining operations to resume. Government was also willing that the mining operation should resume,” said Mr. Kishore Kumar, CEO, Vedanta’s Iron Ore Business.
“We have no control over the market prices but we can at least have proper regulated mining operation. This is possible only with the help of employees,” he said responding to worries about decreasing international pricing.
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.
In the same month, the Environment Ministry had put on hold the green clearance granted to the mining leases in Goa.
In October 2012, the Supreme Court had imposed a blanket ban on mining while hearing a petition, which was lifted in April last year, but with riders.
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