Mr Prasad Baji of Edelweiss Securities Limited in a not to clients wrote that iron ore sales from Goa declined 10% YoY to 0.83 million tonnes on account of seasonal factors and logistical issues.

The company has environmental approvals to mine 15 million tonne per annum from Goa.

Saleable iron ore inventory at Karnataka is 0.8 million tonnes which will be sold eventually in E auction. Iron ore mining in Goa is being examined at two different levels as mentioned below.

The company believes that its mines are operating within the legal framework and does not believe it to be adversely affected.

1. Shah Commission inquiry by Ministry of mines which aims to find irregularities in the Goa mining sector and which is likely to submit its report to the parliament by month end.

2. PAC report which is a state level probe on illegal mining. It is believed to be attempting to highlight the nexus of politicians and irregularities in obtaining mining leases.