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VEDL - Vedanta News Story

₹302 -7.1  -2.3%

Last Trade - 17/09/21

Sector
Basic Materials
Size
Large Cap
Market Cap £11.03bn
Enterprise Value £12.95bn
Revenue £9.90bn
Position in Universe 45th / 3148

INTERVIEW-Vedanta says will work to lift cap on India iron ore output

Wed 27th May, 2015 9:10am
By A. Ananthalakshmi 
    SINGAPORE, May 27 (Reuters) - India-focused Vedanta 
Resources Plc  VED.L  will aim to lift a court-imposed cap on 
its iron ore output in the country's top state for exporting the 
commodity, as it prepares to resume mining there in October 
after a three-year lull. 
    A mining ban that had been in place in the state of Goa 
since September 2012 was lifted last year, but the resumption of 
operations was delayed while the federal government gave 
environmental clearance. 
    India's Supreme Court imposed a production cap of 20 million 
tonnes, of which Vedanta has been allocated 5.5 million tonnes.  
    "We believe that we can mine at much higher rates and we 
look forward to working with the government on lifting the cap," 
Vedanta Chief Executive Tom Albanese told Reuters on the 
sidelines of an industry conference. He is also head of the 
company's Indian unit, Vedanta Ltd  VDAN.NS . 
    Albanese said it would be up to a court-appointed panel to 
determine how much more Vedanta could produce. 
    Increased supply from India would pressure prices for the 
steelmaking material that have recovered from a decade-low hit 
in April, but are still down more than 50 percent from last 
year's peak  .IO62-CNI=SI  . 
    India said last month it would cut export taxes on low-grade 
iron ore from Goa to 10 percent from 30 percent, in a move aimed 
at making it more feasible for miners to sell overseas amid the 
plunge in global prices.  ID:nL4N0XR6CZ  
    "We do feel that the circumstances on the ground in Goa, 
with proper operating practices should support an industry much 
larger than 20 million tonnes per year," Albanese said. 
    Goa exported about 50 million tonnes of iron ore a year 
before the ban was imposed in 2012 as part of a clampdown on 
illegal mining. 
    The state produced low-quality iron ore, with iron content 
of less than 58 percent, that was shipped mostly to China as 
Indian steelmakers prefer higher grade material. 
    But more Chinese mills have opted for high-grade iron ore 
following the drop in prices. 
    Albanese believes there is still Chinese appetite for Goan 
ore, but said it would be tough to recover market share. 
    "Even in this current market where the buyer has a lot of 
choices ... I do believe we will be able to find some market for 
our material," he said. 
    "But I do think it's important for Indian policymakers to 
recognise that we have lost a huge amount of market share over 
the past three years with these mining closures that it will be 
very difficult to recover from." 
     
 
 (Writing by Manolo Serapio Jr.; Editing by Joseph Radford) 
 ((manolo.serapio@thomsonreuters.com; +65 6870 3884; Reuters 
Messaging: manolo.serapio.thomsonreuters.com@reuters.net)) 
 
Keywords: VEDANTA GOA/
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