India: Vedanta Stops Offering Steel Grade Pig Iron Post Goa Mine Closure

Vedanta Resources - one of India's largest pig iron manufacturer has stopped offering steel grade pig iron post cancellation of its iron ore mine in Goa which were a key source of raw material to its pig iron plant.

Pig iron production by the company has suffered a setback post Supreme Court's directive to stop all mining operations at 88 mines with effect from 16 Mar'18 until fresh mining leases are granted and fresh environmental clearances are granted.

As per sources, the company has reduced its pig iron production and is offering foundry grade pig iron. The company has recently raised pig iron prices owing to rise in domestic steel prices.

The company reported pig iron production of 646,000 MT in FY18 against production of 708,000 MT in FY17.

Vedanta remained 2nd largest Indian pig iron exporter in FY18

In total, bulk Indian pig iron exports were recorded at 446,250 MT in FY18.
According to SteelMint stats, bulk pig iron exports by Vedanta Resources for FY18 was around at 165,900 MT, higher by 41% as compared to 117,350 MT in FY17. Largest exporter was MMTC which exports on behalf of NINL at 195,350 MT.

Vedanta's iron ore production from Goa mines fell sharply in FY18

Vedanta's pig iron production is likely to fall in FY19 expected iron ore crisis in near future following Supreme Court ordered cancellation of mining leases in Goa.

Vedanta Resources (Sesa Goa Limited) has observed decrease in its iron ore production from its Goa mines. In FY18, Vedanta's saleable iron ore production from Goa mines stood at 4.9 MnT against 8.8 MnT in previous fiscal, down 44% Y-o-Y.