Vedanta Chairman Navin Agarwal expressed hope that iron ore mining in Goa will resume after the monsoon season.
Addressing shareholders at the 50th annual general meeting held here on Saturday, the chairman of the mining-to-oil conglomerate said he was hopeful of the resumption of iron ore mining in Goa in October this year, despite a decline in global iron ore prices.
“Mining in Karnataka resumed in February and we have been granted an interim capacity of 5.5 million tonnes of saleable ore in Goa, where mining is expected to recommence after the monsoons – October onwards – after receiving the required government approvals,” Agarwal said, adding that it was disappointing that mining did not resume last year. He said the company was encouraged by the steps taken by the government to revitalise the mining industry, and termed the reduction of export duty on low-grade iron ore and the enactment of Mines and Minerals (Development and Regulation) Amendment Act, 2015 as steps in the right direction.
“This will provide continuity to our mining leases and bring transparency to future auction processes for mineral concessions,” Agarwal said.
He said Vedanta was poised for accelerated growth in 2016, led by a progressive ramp-up in the new alumina smelters at Korba in Chhattisgarh and Jharsuguda in Odisha. The company had secured raw material for the alumina refinery in Jharsuguda with the State government granting prospecting licences for three deposits, Agarwal said, adding that the expansion of the Lanjigarh alumina refinery was in the final stages and environmental clearance expected shortly.
“Our world-class aluminium and power assets are ramping up [capacity] to reach record production levels, following the $8 billion investment programme,” he said.
On the proposed merger of Cairn India with Vedanta Ltd, Agarwal said it would strengthen the company’s cash flows, reduce earnings volatility due to diversified revenue streams, while also reducing procurement and lowering funding costs.
“Cairn India’s shareholders will get access to Vedanta Limited’s tier I metals and mining assets, which are well-invested, have low cost and long life. Vedanta’s focus on improving returns from core, existing operations in order to unlock value will benefit Cairn India and its shareholders,” Agarwal said.