Vedanta's iron ore sales fall by 50% in FY19 due to lower production in Goa

Metals and mining conglomerate Vedanta Ltd saw its iron ore sales fall by 50% in FY19 due to lower production and sales volume in Goa.

Vedanta achieved 3.8 million tonnes (mt) in iron ore sales in FY19, down 7.6 mt in the preceding fiscal. In Goa, where iron ore production and sales suffered on account of mines closure pursuant to a Supreme Court order, iron ore sales plummeted 77 per cent.

“In Goa,  production  and  sales  volume  were  lower  compared  to  previous  periods  due  to mine closure  pursuant to the Supreme court judgement dated  February 7, 2018  directing  mining operations  of  all companies in  Goa  to cease with effect from  March 16, 2018. We continue  to engage with the Government for a resumption of mining operations,” Vedanta Ltd said in a release.

Vedanta's iron ore sales in Karnataka rose 19 per cent in the last fiscal. While the company's production of saleable ore soared by 89 per cent, it failed to compensate the prodigious loss in Goa. In FY18, Vedanta recorded 4.9 mt iron ore output which fell to 0.2 mt in FY19.

“In Karnataka, the production was 4.1 mt, 89 per cent higher  year-on-year (y-o-y) due to an increase in annual mining cap in Q1 FY2019. Sales in FY 2019 were at 2.6 million tonnes, 18 per cent higher y-o-y due to an increase in production partially offset by muted e-auction sales. The production of pig iron increased  to  686,000  tonnes in  FY2019, 6 per cent higher  mainly  due  to lower metallurgical coke availability in Q1 FY2018 and local contractors’ strike in Q2 FY 2018,” the company's statement added.