Vedanta update on iron ore business in Q2

16 October  2017

At Goa, production was 0.4 million tonnes, with mining activities being lower in Q2, due to the monsoon season. We sold a lower quantity of ore at 0.1 million tonnes due to the low pricing environment.

At Karnataka, we are close to achieving our annual mining cap with production of 0.9 million tonnes during the quarter. Sales were 0.6 million tonnes during the quarter, 30% higher y-o-y and 43% higher q-o-q.

We have inventory of around 3 million tonnes at Goa and 1.2 million tonnes at Karnataka which will be sold in coming quarters.

We remain engaged with respective state governments for mining capacity increases. Pig Iron production decreased to 137,000 tonnes, 29% lower y-o-y and 16% lower q-o-q due to a local contractors’ strike. This strike has been resolved in mid-September 2017 and production will pick up in coming quarters.

Production from Goa was 2.6 million tonnes and sales were 2.0 million tonnes, compared to 2.9 million tonnes and 2.4 million tonnes respectively. Production and sales at Goa were impacted by the low pricing environment. At Karnataka, both production and sales were higher y-o-y at 1.9 million tonnes and 1.0 million tonnes respectively. Production of Pig Iron decreased to 300,000 tonnes in H1 FY2018, 19% lower mainly due to lower metallurgical coke availability on account of weather related supply disruptions in Australia in Q1 FY2018 and local contractors’ strike in Q2 FY2018. Pig iron production is expected to pick up in the coming quarters.

(in million dry metric tonnes, or as stated)

Source: Steelguru