Vedanta Limited, which has managed to retain 80 per cent of its earlier mining capacity in Goa after state government's renewal of the leases, is now looking to regain the lost market share, a senior official said.
"Since mining activities were shut in Goa, several new Australian mines were started and others expanded substantially. This means we will need to fight hard to regain lost market share. We are hopeful that our strong Sesa Goa brand will prevail, but we will have to compete against a strong set of suppliers," Tom Albanese, Chief Executive Officer, Vedanta Resources, told PTI in Goa.
The company, which has decided to shift its registered office from Goa to Mumbai, is now keenly awaiting the restart of mining in Goa post the monsoon season by October.
"Majority of the approvals are in place and we are working to secure remaining approvals. Under the present cap of 20 million tonnes in Goa, we have been allocated an interim capacity of 5.5 mtpa of saleable ore in Goa," he said.
"It is a good start. We expect that in the days to come, we will be allowed to extract more given our innovative and sustainable mining solutions," Albanese added.
The CEO said that the company has intense faith in the union and state government to clear the uncertainty over the industry. "The NDA government at the Centre has been proactive in ensuring that the MMDR Act is passed and issues of the sector are resolved," he said.
"Although at a broader level, commodities are in a downcycle and we believe that as and when the investment cycle kickstarts, Indias domestic markets will drive the demand.
This will benefit ferrous and non-ferrous miners not only in India, but across the world," he said. The company faced bad times during last three years since the closure of the mining industry in the state.
"Over most part of the financial year (2014-15), activities in our iron ore assets in India have remained suspended as several statutory clearances were to be secured.
During November-January period, mining leases in Goa were renewed.
In Karnataka, mining activities resumed in February post renewal of our lease there and we have the permission to mine 2.29 mtpa of iron ore in the state," he said.