Team Herald
PANJIM: A delegation from China is in Goa for discussion on purchase of iron ore from the State’s leading mining producer – Vedanta Resources. China is the only market for the State’s low grade iron ore, though in the recent past it has been buying from countries like Australia.
Representatives of the mill from China’s Jiangsu province and another from Tangshan area are in dialogue with officials of Vedanta’s subsidiary, Sesa Iron ore. Both the mills had been associated with Sesa in the past and their visit is to compare the low grade ore from Sesa with that of other markets in Australia and other places, before finalizing the deal.
“They are our long term buyers and with the company intending to resume extraction soon, they are in Goa to have discussion with the officials,” A N Joshi, Vice President-Corporate Affairs of Sesa Iron Ore told media persons.
A N Joshi told Herald, “Mining of iron ore will not start immediately as we have to pump out water from the mines which has been lying idle for almost three years now. We will have to wait for dry spells. But initially we will have to buy the cargo through e-auction from the government and then evacuate and sell.”
Sesa Iron ore has officially announced resumption of iron ore extraction at its mine in Codli post the monsoon season. As per the latest cap on the iron ore production, Sesa’s annual production limit has been restricted to three million tonnes.
The Chinese mills have a production capacity of six million metric tons each of steel a year, and import six million metric tonnes of iron ore each annually.
Goa government has renewed 89 mining leases; however the renewals are under the scanner of the Accountant General of Goa. Government is expecting the mining industry to resume from the coming season in October, this year.
