Vedanta reopens Codli mine in Goa, India

12 August 2015 (Last Updated August 12th, 2015 18:30)

Indian natural resources company Vedanta has reopened its Codli mine in Sanguem taluka in the Indian state of Goa following a three-year ban.

Indian natural resources company Vedanta has reopened its Codli mine in Sanguem taluka in the Indian state of Goa following a three-year ban.

Vedanta said it has received the relevant consent, license and approvals from Indian Bureau of Mines to commence iron-ore mining operations in Goa for some of its leases.

In 2012, the Supreme Court banned mining in a bid to curb illegal mining, but the ban was lifted in April 2014.

The company received approvals to restart mining at its Codli and Bicholim mines and expects final clearances to other mines by end of August.

Mining will be restarted completely post monsoon season and by the end of the current fiscal year the company plans to use its full annual production allowance of 5.5 million tonnes.

Goa Chief Minister Laxmikant Parsekar said: "We have done all what we could to restart mining and will continue to do whatever is required.

"I had given a date of October to restart mining and Vedanta has surprised me by reopening 2 months earlier."

Vedanta Iron Ore Business CEO Kishore Kumar said: "The resumption of mining will resume the employment of many mining dependent people, the government will benefit from increased revenues and communities will be empowered.

"I urge the government to note the current market scenario, with the steep downturn in prices, and more importantly resolve the issue of dumping of ore outside lease areas for Goa mining to be viable."

The state expects iron ore production to cap at 20 million tonnes a year.