More reports on: Mining

Vedanta reopens top Goa mine, production to start after monsoon

10 August 2015

Diversified natural resources company Vedanta today announced the reopening of its Codli mine in Goa, marking the resumption of iron ore mining in the state after a gap of nearly 3 years.

Anil Agarwal-led Vedanta Limited said it is the first company to restart iron ore mining in Goa. The company has received all approvals to restart mining at its Codli and Bicholim mines.

The Codli mine, which was Asia's largest mining site before it was shut down, has an extraction capacity of 3.1 million tonnes.

Final clearances to other mines are expected to be granted by end of August, the company stated in a release.

The company plans to fully resume mining after the monsoon rains and expects to reach its full sanctioned annual production capacity of 5.5 million tonnes by the end of the current fiscal year.

State chief minister Laxmikant Parsekar who attended the reopening ceremony at Vedanta's Codli mine, said, ''We have done all what we could to restart mining and will continue to do whatever is required. I had given a date of October to restart mining and Vedanta has surprised me by reopening two months earlier. I appreciate this early restart by Vedanta. I also appeal to all other miners to emulate Vedanta and restart as soon as they can. The government will do all that can be done to support everyone who is affected by the mining ban. We can say now that 'Achchhe Din Aa Gaye Hain'.''

''We will need to work hard to regain market share in very difficult markets. This will take close cooperation between the industry, the government and all stakeholders to ensure we can reopen on a competitive basis,'' said Tom Albanese, CEO, Vedanta.

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.

''I urge the government to note the current market scenario, with the steep downturn in prices, and more importantly resolve the issue of dumping of ore outside lease areas for Goa mining to be viable. 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. Together we can win back the market and confidence to truly explore the potential of the iron ore industry in Goa and in India,'' he added.

Iron ore production is currently capped at 20 million tonnes per annum in the state.

Vedanta Resources Plc is a London-listed diversified global natural resources company. The group produces aluminium, copper, zinc, lead, silver, iron ore, oil and gas and commercial energy. The group has operations in India, Zambia, Namibia, South Africa, Ireland, Liberia, Australia and Sri Lanka.

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