London-listed Vedanta Resources said on Thursday it would likely record an impairment charge of up to $600 million following the closure of its iron ore business in Goa.
In February, the Supreme Court quashed all iron ore mining permits and mining was ordered stopped from March 16 in Goa, one of the country's top producing states for the material used in steel.
Billionaire Anil Agarwal's Vedanta Resources, the state's biggest ore miner, said there could be a likely impairment of $500-600 million net of taxes, or $700-$800 million gross of taxes, on this account.
Court action against illegal mining shut the Goa industry for more than two years from 2012, prior to which Goa had exported about 50 million tonnes a year. The Supreme Court later limited production in the state to 20 million tonnes a year.
The latest ban would affect not only Vedanta but also several small unlisted companies run by local families.
Vedanta Ltd is expected to produce around 5.5 million tonnes of Goa ore in the fiscal year ending March 31. India's ore production was 192 million tonnes last fiscal year.
Shares of Vedanta Resources were up 1.7 percent at 1524 GMT.
Get real time advice for Stock Trading tips , Best Accurate Stock Tips , Stock Market Live , Equity Tips , Intraday stock tips , Mcx tips , and all Maket Updates From capitalstars
Investment & trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance.
CAPITALSTARS INVESTMENT ADVISER: SEBI REGISTRATION NUMBER: INA000001647
0 comments:
Post a Comment