Future of iron ore mining in Goa remains intact: Vedanta

Goa will overcome all the legal hurdles and will eventually come on the path of ore extraction, said CEO, Sesa Iron ore

Mining conglomerate Vedanta today said the future of iron ore mining in Goa will remain intact despite current international slowdown in prices and existing hurdles.

"Goa has its reserves and resources which like any other mineral state needs to be explored. I am confident that current auction process and the way things are moving in the country give positive signals for the mining industry," Kishor Kumar, Chief Executive Officer, Sesa Iron ore, an arm of Vedanta, told PTI today.

"I am sure Goa will overcome all the legal hurdles and will eventually come on the path of ore extraction. Mining future for Goa still remains intact albeit the current slowdown and all the turmoil that you are hearing in the global market," he added.

The mining industry in Goa, which abruptly stopped in 2012 following Supreme Court directives, is struggling to pick up even after the apex court lifting the ban in April 2014.

Kumar said the industry will have to work hard for next two-three years with its head down.

Reacting to falling international prices for the ore, Kumar said the company foresees lot more challenges in the international market in next couple of years.

"The prices will continue to be subdued as oversupply will be there. Large producers are working on enhancing the capacities. The demand side may not be very strong but supply side is very strong," he said.

Referring to Goa scenario, the CEO said the SC appointed monitoring committee which has filed its report before the apex court has sanctioned that the current capping of 20 million tonnes annually on the extraction be enhanced.

"Sooner the report gets implemented and state government approves the enhancement, we will see at least the capping to go for 30 MT for next financial year," he commented.

"Many leases are in the forest zone areas. Even if 3-4 million tonnes can be reallocated from these leases to other mines it will help the mining industry to achieve the limits sanctioned by the monitoring committee," Kumar stated.

He said the industry currently faces a two-fold challenge.

"One challenge that we have is largely the operational and other challenge is to do with fiscal support for the business in view of the price which has come down," Kumar said.