India Steel Market Watch
October 30: Vedanta Limited (formerly known as Sesa Sterlite/Sesa Goa) has managed to receive all the clearances for its Goa iron ore mining unit for a capacity of 5.5 million tons per annum (mtpa), according to information available with ISMW.
Also, despite the various regulatory restrictions implemented by the Centre and state government, the company has managed to increase its production at Karnataka to 0.8 million tons (mt) from 0.2 mt, according to information.
Sales growth was, however, lower at 20% due to lower iron ore prices.
Vedanta has resumed mining by the end of the second quarter (Q2) of FY16 and made its first shipment in October 2015 and is working with the government to rationalise the duty structure on its iron ore exports.
As per the company, at the current FOB price of US$40/ton, duties stand at US$16/ton. The company is at break-even at current prices.
Demand for Indian iron ore has increased, it seems, due to higher content of impurities in ore imported from Australia.