Sesa re­sumes min­ing ops in Kar­nataka

The Financial Express - - FRONT PAGE - Fe Bureau

VEDANTA Re­sources group firm Sesa Ster­lite re­sumed iron ore min­ing at Chi­tradurg on Mon­day, eight months af­ter the Supreme Court cleared min­ing op­er­a­tions at ‘A’ and ‘B’ cat­e­gory mines in Kar­nataka, re­ports fe Bureau in New Delhi. The SCap­pointed panel had capped the ore out­put by the firm at an an­nual 2.4 mil­lion tonnes. The Sesa Ster­lite scrip jumped 4% but closed up 0.77% on the BSE, on a day the Sen­sex ended down 0.24%.

New Delhi, Dec 30: Sesa Ster­lite re­sumed iron ore min­ing at Chi­tradurg in Kar­nataka on Mon­day, eight months af­ter the Supreme Court cleared min­ing op­er­a­tions for ‘A’ and ‘B’ cat­e­gory mines in the south­ern state. The court-ap­pointed mon­i­tor­ing com­mit­tee had re­stricted pro­duc­tion of iron ore by the com­pany at an an­nual 2.4 mil­lion tonne.

The com­pany, for­merly Sesa Goa, said that the mon­i­tor­ing com­mit­tee has al­lowed them to re­sume min­ing op­er­a­tions in the state of Kar­nataka. “Ac­cord­ingly, the com­pany has com­menced its min­ing op­er­a­tions to­day (Mon­day), in ac­cor­dance with stip­u­lated con­di­tions,” the com­pany said in a state­ment. “We have re­ceived all nec­es­sary ap­provals from the state gov­ern­ment to re­sume op­er­a­tions at the Nar­rain mine in Chi­tradurg,” a com­pany of­fi­cial said.

The com­pany is also in the process of get­ting a ‘change of name’ clear­ance af­ter which it will be able to sell the out­put. “Since the com­pany was re­named Sesa Ster­lite af­ter the ban was im­posed, we will only be able to un­der­take sale of ore af­ter the change in name of the com­pany is ap­proved,” the of­fi­cial added.

Out of 115 mines that are el­i­gi­ble to start iron-ore min­ing op­er­a­tions in Kar­nataka af­ter the Supreme Court’s April verdict, the Cen­tral Em­pow­ered Com­mit­tee (CEC) has given ap­provals to only 20 mines for op­er­a­tional in the state. Out of th­ese 20 mines, which have com­menced their op­er­a­tions so far, have pro­duced around 8 mil­lion tonnes of ore in the past eight months. The state is cur­rently pro­duc­ing 17 mil­lion tonnes of iron ore against the to­tal de­mand of around 35 mil­lion tonnes.

NMDC is still the largest iron ore pro­ducer in the state. The com­pany, which re­main un­af­fected from min­ing ban in the state, pro­duces close to 9 mil­lion tonne of ore from its two mines — Ku­maraswamy and Don­i­malai.

Be­fore the ban, Kar­nataka used to pro­duce around 45-50 mil­lion tonnes of iron-ore from 166 mines.

Shares of Sesa Ster­lite re­acted pos­i­tively to­wards the de­vel­op­ment and was up by 4% in the morn­ing trade be­fore par­ing some gains to close up about a per­cent at R202.75 on the Bom­bay Stock Ex­change.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.