Shares of Vedanta rose over 3 percent intraday on Friday as it is likely to start iron ore mining operations at the Codli mines in Goa on August 10. Vedanta will restart iron ore business in Goa on August 10 after a closure for nearly 3 years.
The actual operations will begin post monsoon around the second half of September. The Anil Agarwal-led firm has permission to mine 5.5 million tonnes per annum (MTPA) of the total permitted 20 million tonnes (MT) capacity for iron ore production in Goa by the Supreme Court.
Bicholim is another mine for which all permissions have been granted, which means approval of the mine plan from IBM and NOC from Goa Pollution Control Board on water and air pollution.
Vedanta will commence operations at a time when iron ore prices are at their lowest. Since the closure of mining operations in September 2012, prices have crashed to USD 32-33 per tonne for Goa grade of iron ore (average grade 58 percent FE) from a peak of about USD 140 per tonne in 2012.
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. During the same month, Environment Ministry had put the environment clearance granted to the mining leases in Goa in abeyance. In October 2012, Supreme Court imposed a blanket ban on mining while hearing a petition. It lifted the ban in April last year, but with conditions.
At 10:49 hrs Vedanta was quoting at Rs 129.70, up Rs 2.80, or 2.21 percent on the BSE.
(With inputs from PTI)
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