Amended MMDR Act may end current impasse: Sesa Sterlite

Hit by the mining ban in states like Goa and Karnataka, Vedanta Group Company, Sesa Sterlite is hopeful that the amendment to Mines and Minerals Development & Regulation Act will put an end to the current impasse. Sesa Sterlite plans to enter the steel business in the long term but in the short term is awaiting regulatory clearances to resume mining, reports CNBC-TV18's Anshu Sharma.Almost two years after the mining ban was imposed in Goa, there is hope in the air. Sesa Sterlite which produced about 15 million tonne of iron ore prior to the ban was the hardest hit and is now betting on the amended mining regulation to break the impasse. Tom Albanese, CEO, Sesa Sterlite, said, "I am supportive of MMDR amendment. Auction will bring transparency on national assets, and will break current mining impasse."Even before the MMDR Act was amended by the central government, the state government of Goa renewed more than 87 mining leases but mining is yet to start. The delay in resumption is on account of environment clearances. "We would like to resume mining in Goa as soon as possible. Environmental clearances are still awaited to resume mining in Goa", said, Albanese.To add to its woes, Sesa Sterlite's Karnataka mines which produced around 2.6 million tonne of iron ore have been shut since June 2014 due to the lack of environment clearances. "We expect to resume mining in Karnataka soon subject to clearances. We would like to do more business on the steel side only if iron ore is available", said, Albanese.Miners like Sesa Sterlite are desperately looking for a cut in the export duty on low grade iron ore in the upcoming Budget. Companies claim the cost of low grade iron ore in the global market is equivalent to cost of production and a further squeeze on margins will make the business unviable. Miners are also hoping the government will lift the cap on mining to hike iron ore production.

Also Read: SteelMin seeks hiking of import duty on finished productsAlbanese, said, "It is important to reduce export duty on low grade iron ore."While the steel ministry is lobbying for a cut in duties, the finance ministry may find it tough to oblige.