Mining giant Vedanta may suspend mining operations amid iron ore transportation tussle with the truck owners.
Some truck owners in Goa under All Goa Truck Owners Association (AGTOA) had created a crisis and stopped transportation of iron ore from Vedanta Sesa iron ore site in Goa which has hampered movement of material. A section of truck owners are demanding a hike in the iron ore transportation rates.
A section of truck owners are demanding a hike in transportation fares to INR 17.63 /MT per km and the mining company has offered to pay INR 8/MT per km. As per the view of company officials the company is already burdened with the falling global iron ore prices and tax structure which has made the situation further unfavourable.
The transportation fares were high when iron ore prices in global market were high but now when prices have hit record lows its difficult to continue with the same transportation fares. Company officials said that its of no use mining iron ore and not being able to export it. Suspension of mining operations will adversely impact the mining operations in the state which have resumed in Sept’15.
Later it was heard that AGTOA has stepped forward with a win-win situation by offering to accept the old rate of INR 11.27/MT per km.
Vedanta is the first mining company to commence its mining operations in Goa after the mining ban was lifted after a gap of 3 years. The company has also remained the largest iron ore exporter from the state of Goa and has exported 516,000 MT iron ore in last two months.
-Sourced
Leave a Reply