PK Mukherjee, managing director of Sesa Goa hopes mining operations to restart in Karnataka by December-end. He also feels that the shortfall in Karnataka would come down by 1.5-2 metric tonne.
Sesa Goa projected a shortfall of 4-5 metric tonne in Karnataka post the mining ban. However, Mukherjee expects prices to be robust going forward. He also indicated that the royalty cost would double to Rs 300 per tonne if the mining bill is passed in an organised form.
Here is the edited transcript of his interview. Also watch the accompanying video.
Q: What is your view on the mining ban? How would it impact the industry?
A: Under Sesa port; we have roughly 15 million tonne of mining. If mining stops in Karnataka, it will directly and indirectly impact 5,000 plus people. Goa alone is involved with 9,000 to 10,000 people.
As far as industry is concerned, the total number of people to be impacted would be 75,000 to 80,000 directly and indirectly. If we take five to six people per earner’s family, it will be close to one third of the Goa’s population as per the last census. We have been looking at the impact and not the investments in ports, service sector banks, insurance and the capital goods industry.
Oil companies get revenues not only from the royalty, but also from the VAT, which is one of the biggest earning for the government. Goa governments revenue from the royalties only was Rs 1000 crore last year. Any decision taken for the Goa mining should be balanced.
Q: What kind of margin impact would this have?
A: If the mining is stopped, there wouldn’t be any margin.
Q: You said that you will still expect to make up some short call by December. What do you mean by that?
A: That was in Karnataka’s context. In Karnataka, before the mining ban was imposed selling in the domestic market, we are making about USD 24-25 per tonne on an average. Hopefully, after the mining ban is removed, we will come back to that regime and that margin will be maintained.
Q: What is your outlook on prices?
A: The prices will more or less remain robust. Due to the Karnataka ban, Orissa has a lot of logistic issues. Goa will also have uncertainties, besides the export duties and very frequent tinkering with various regulatory issues. There is a huge uncertainty as to the Indian supply chain has emerged amongst the world international buyers.
Q: Can you give us a ballpark figure of what you expect?
A: In next two-three years, world market will be range bound and the supply demand will be more or less balanced.
....more info
Sesa Goa projected a shortfall of 4-5 metric tonne in Karnataka post the mining ban. However, Mukherjee expects prices to be robust going forward. He also indicated that the royalty cost would double to Rs 300 per tonne if the mining bill is passed in an organised form.
Here is the edited transcript of his interview. Also watch the accompanying video.
Q: What is your view on the mining ban? How would it impact the industry?
A: Under Sesa port; we have roughly 15 million tonne of mining. If mining stops in Karnataka, it will directly and indirectly impact 5,000 plus people. Goa alone is involved with 9,000 to 10,000 people.
As far as industry is concerned, the total number of people to be impacted would be 75,000 to 80,000 directly and indirectly. If we take five to six people per earner’s family, it will be close to one third of the Goa’s population as per the last census. We have been looking at the impact and not the investments in ports, service sector banks, insurance and the capital goods industry.
Oil companies get revenues not only from the royalty, but also from the VAT, which is one of the biggest earning for the government. Goa governments revenue from the royalties only was Rs 1000 crore last year. Any decision taken for the Goa mining should be balanced.
Q: What kind of margin impact would this have?
A: If the mining is stopped, there wouldn’t be any margin.
Q: You said that you will still expect to make up some short call by December. What do you mean by that?
A: That was in Karnataka’s context. In Karnataka, before the mining ban was imposed selling in the domestic market, we are making about USD 24-25 per tonne on an average. Hopefully, after the mining ban is removed, we will come back to that regime and that margin will be maintained.
Q: What is your outlook on prices?
A: The prices will more or less remain robust. Due to the Karnataka ban, Orissa has a lot of logistic issues. Goa will also have uncertainties, besides the export duties and very frequent tinkering with various regulatory issues. There is a huge uncertainty as to the Indian supply chain has emerged amongst the world international buyers.
Q: Can you give us a ballpark figure of what you expect?
A: In next two-three years, world market will be range bound and the supply demand will be more or less balanced.
....more info