India lifts iron ore mining ban in Goa, caps annual output

|By:, SA News Editor

India's Supreme Court ends a 19-month ban on the mining of iron ore in the state of Goa, allowing mining to begin again but at a restricted level of 20M metric tons/year.

The additional supply from Goa would add to an expected surplus of iron ore this year, as big mining companies such as Rio Tinto (RIO -0.4%) and BHP Billiton (BHP +0.1%) boost production while demand from top consumer China slows.

Goa, India's largest producer of iron ore, accounted for about half the country's iron ore exports until the ban was imposed.

Shares of Sesa Sterlite (SSLT +2.9%), India's largest private iron ore miner, open higher on news that the ban had been lifted.