Indian miner Vedanta posted a 61 percent drop in
saleable iron ore output in its second quarter, hit by a ban on
mining in Karnataka, though sales fell by a smaller amount due to high volumes
sold before the curb.
The ban is part of efforts by the key iron ore producing southern state of
Karnataka to control illegal mining. Vedanta said the court had ordered a study
by government agencies and was allowing the sale of inventory by auction.
Iron ore is typically Vedanta's most profitable product along with zinc,
accounting for almost a third of profits.
The miner, which bought three iron ore assets in emerging producer Liberia in
August, said its iron ore production fell to 1.12 million tonnes, from 2.88
million tonnes in the same period a year ago. Sales totaled 1.55 million
tonnes, from 1.82 million a year ago.
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