India: Vedanta's Iron ore Production from Goa Fall 58% in Q4 FY18

Vedanta Resources (Sesa Goa Limited), one of the major metal and mining giant has observed decrease in its iron ore production from its Goa mines by 58% Y-o-Y to 1.5 MnT in Q4'FY18 compared to 3.7 MnT in Q4 FY17. However, on quarterly premises, iron ore production from Goa increased as it was 0.8 MnT in Q3 FY18.

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.

Production volumes were lower primarily due to lower demand for low-grade ore and mine closure pursuant to the Supreme Court judgment. Supreme Court of India judgment dated 07 Feb'18 has directed mining operations in Goa to stop with effect from 16 Mar'18.

Apex court on 7th Feb'18 in its judgment abandoned 88 iron ore mine leases which were granted in second renewal with effect from 16th Mar'18 until fresh environmental clearances granted.

Vedanta's iron ore exports drop 45% in FY18

According to customs data maintained with SteelMint, Vedanta exported 4.03 MnT in FY18 compared to 7.32 MnT in previous fiscal. Despite fall in export volumes, Vedanta continued to remain India's largest exporter in FY18.

Vedanta's annual mining allocation in Karnataka likely to be increased

In FY18, Vedanta's iron ore production from Karnataka stood at 2.2 MnT against 2.1 MnT in FY17. Vedanta produced stood at 0.1 MnT iron ore from Karnataka in Q4'FY'18, stable on the quarterly basis.

At Karnataka, Vedanta's annual mining allocation is likely to increase by early Q1 FY'19 on account of the Supreme Court cap increase for the State from 30 to 35 MnT.

Vedanta iron ore production/sales summary-:

Fig in MnT
Source: Company reports, BSE filings