Vedanta hit by mining suspension in Goa

Goa, a major iron ore producing state in India, has temporarily suspended all mining activities in the state after a mining scam was uncovered.

The move follows a government investigation which uncovered "serious illegalities and irregularities" in the state's mining operations.

The order to stop digging was issued late on Monday, September 10th. Indian daily India Today reports that an enquiry commission headed by Justice MB Shah has pointed the finger at various state government agencies, including the mines and geology department, forest department, pollution control board, as well as central government agencies, particularly those functioning under the umbrella of the union ministry for mines and environment and forests.

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"The report has also squarely blamed former chief minister Digambar Kamat and other bureaucrats linked to the ministry as the main architects of the illegal mining scam, along with major mining industry players," the paper said.

The moratorium will hit Sesa Goa, a subsidiary of London-listed Vedanta Resources. Vedanta said Sesa Goa has suspended all mining operations with effect from Tuesday, September 11th, until further notice, although the company is at liberty to sell or transport ore already dug out of the ground, subject to inspection by the relevant authorities.

Sesa is India's largest producer and exporter of iron ore in the private sector.

JH