Vedanta inches up on resumption of iron-ore mining operations in Goa

Vedanta rose 0.46% to Rs 130.05 at 10:46 IST on BSE after the company said it has received the relevant consent, license and approvals in place to commence the iron-ore mining opertions in Goa for some of its leases.

The announcement was made during market hours today, 10 August 2015.

Meanwhile, the S&P BSE Sensex was up 155.40 points or 0.55% at 28,391.79.

On BSE, so far 1.70 lakh shares were traded in the counter as against average daily volume of 4.78 lakh shares in the past one quarter.

The stock was volatile. The stock rose as much as 1.19% at the day's high of Rs 131 so far during the day. The stock lost as much as 0.11% at the day's low of Rs 129.30 so far during the day. The stock had hit a 52-week high of Rs 305.30 on 19 August 2014. The stock had hit a 52-week low of Rs 124.10 on 4 August 2015.

The stock had underperformed the market over the past one month till 7 August 2015, sliding 18.35% compared with Sensex's 0.23% rise. The scrip had also underperformed the market in past one quarter, declining 40.71% as against Sensex's 6.16% rise.

The large-cap company has equity capital of Rs 296.47 crore. Face value per share is Re 1.

Vedanta said it is likely to recommence iron-ore mining operations in Goa from 10 August 2015 at its biggest mine at Codli in Sanguem taluka in Goa. Further the company has been granted approval fot total extraction of 5.5 million metric tons of which Codli is 3.1 million metric tons. Till date, five mining plans and schemes for company's mines have been cleared by Indian Bureau of Mines and Vedanta is awaiting clearance of further 15 plans, the company said in a statement. Over the balance monsoon period the company anticipates receiving these approvals and expect a full scale resumption post monsoon, Vedanta said in a statement.

Even as India and it particular miners from Goa look to regain lost markets, iron ore markets/prices are weak and the international trade environment remains challenging, Vedanta said. The company continues to work with central and state government to improve competitiveness of Indian exports, Vedanta said in a statement.

Prior to the suspension of mining in 2012, India was the third largest exporter of iron ore and Vedanta was the largest Indian exporter of low grade ores.

It may be recalled that Vedanta had earlier resumed mining operations in Karnataka in February this year.

On consolidated basis, Vedanta's net profit rose 130.6% to Rs 865.94 crore on 0.6% decline in net sales to Rs 16951.88 crore in Q1 June 2015 over Q1 June 2014.

Vedanta (formerly Sesa Sterlite) is a diversified natural resources company. The company produces oil & gas, zinc, lead, silver, copper, iron ore, aluminium and commercial power and has a presence across India, South Africa, Namibia, Ireland, Australia, Liberia and Sri Lanka.

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