Mining ban crunches Vedanta, Sesa output

India-focused miner Vedanta posted a 61% drop in saleable iron ore output in its second quarter, hit by a ban on mining in Karnataka, though sales fell by a smaller amount due to high volumes sold before the curb.

The miner said its iron ore production fell to 1.12 million tonne (mt), from 2.88 mt in the same period a year ago. Sales totalled 1.55 mt, from 1.82 mt a year ago.

Vedanta said its refined zinc production from its core Indian operations rose 5% in the second quarter to the end of September to 185,000 tonne, largely thanks to better performance at its smelters.  Meanwhile, Sesa Goa, a Vedanta group miner, too, said its ore production and sales were impacted in the second quarter by the Karnataka ban and closure of its Thakurani mine in Orissa. The firm’s iron ore sales declined 14.8% on year to 1.55 mt in July-September, it said. Production in the quarter declined to 1.12 mt from 2.88 mt a year ago. Total sales during the first six months were 5.80 mt, down 13.56%.

With NewsWire18