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Sesa Sterlite resumes iron ore mining in Karnataka

Friday, 13 Mar 2015

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Sesa Sterlite, a part of Vedanta Group, has resumed its iron ore mining in Karnataka. It is expected to produce 7,00,000 tonne this month. The annual production capacity at the mines has been capped at 2.3 million tonne.

The state government has renewed the mining lease. After receiving the statutory clearance, the company started mining from last week, in Karnataka.

Before the mining ban was imposed, Sesa Sterlite’s iron ore mine was located in the southern part of Karnataka, in Chitradurga district, which used to produce six million tonne a year. The Supreme Court imposed a ban on mining activities in India based on the Shah Commission report. In April 2013, the apex court lifted the ban on iron ore mines in Ballari, Chitradurga and Tumkur districts of Karnataka.

Of 115 mines (categories A and B) that are eligible to start operations after the Supreme Court’s April verdict, only 24 mines have commenced operations. The company has been facing challenges in restarting mining in Goa.