PANJIM: Owing to the frequent disruption of transportation of iron ore by truck owners, Vedanta’s Sesa Goa Iron Ore Division, one of Goa’s largest iron ore mining companies, has threatened that it will be forced to close down its pig iron plant at Amona, which will affect the livlihood of about 4000 employees. The company has already shut down one of its three blast furnaces due to lack of raw material.
On Friday, the company’s official spokesperson said, “We have been trying our best to keep the business running. The company has been forced to shut down one of its blast furnaces at Amona and will shut down the other two soon if transportation of ore is hindered by vested interest. The company’s pig iron plant at Amona depends on ore from its mines in Codli and Bicholim and this could affect a large workforce that earns their livelihood.”
The spokesperson added, “We have been law abiding and have knocked on each and every door for a solution, approached every stakeholder of the industry to intervene and help resolve the problem amicably. Our efforts seem to be in vain, if things continue this way, the company will have no other option but to close down operations. All stakeholders must realize that if this happens, it is not just the organization that is at a loss. Every direct and indirect stakeholder will find sustenance difficult if they do not adopt a proactive approach to resolve the crisis at the earliest.”
Vedanta’s Sesa Goa Iron Ore Division has begun mining operations and started transportation of ore purchased through e-auction for shipment at a trucking rate as declared by the Directorate of Mines and Geology (DMG) vide its circular on rate of transport dated April 21, 2015.
Based on the Supreme Court directive, the company has purchased e-auctioned ore for its blast furnace operations at the pig iron plant as well as for exports. In the past ten days the company has been facing problems with truck operators hampering business demanding a hike in freight tariff.
The company has adhered to the DMG circular where payment towards e-auction cargo is concerned. But the truck owners are seeking more that what has been fixed by DMG.
