Metals and mining conglomerate Vedanta Ltd saw its iron ore sales fall by 50% in FY19 due to lower production and sales volume in Goa.
Vedanta achieved 3.8 million tonnes (mt) in iron ore sales in FY19, down 7.6 mt in the preceding fiscal. In Goa, where iron ore production and sales suffered on account of mines closure pursuant to a Supreme Court order, iron ore sales plummeted 77 per cent.
“In Goa, production and sales volume were lower compared to previous periods due to mine closure pursuant to the Supreme court judgement dated February 7, 2018 directing mining operations of all companies in Goa to cease with effect from March 16, 2018. We continue to engage with the Government for a resumption of mining operations,” Vedanta Ltd said in a release.
Vedanta’s iron ore sales in Karnataka rose 19 per cent in the last fiscal. While the company’s production of saleable ore soared by 89 per cent, it failed to compensate the prodigious loss in Goa. In FY18, Vedanta recorded 4.9 mt iron ore output which fell to 0.2 mt in FY19.
“In Karnataka, the production was 4.1 mt, 89 per cent higher year-on-year (y-o-y) due to an increase in annual mining cap in Q1 FY2019. Sales in FY 2019 were at 2.6 million tonnes, 18 per cent higher y-o-y due to an increase in production partially offset by muted e-auction sales. The production of pig iron increased to 686,000 tonnes in FY2019, 6 per cent higher mainly due to lower metallurgical coke availability in Q1 FY2018 and local contractors’ strike in Q2 FY 2018,” the company’s statement added.
Source: Business Standard