Vedanta wins bid to mine Karnataka’s Janthakal iron ore block

Mining conglomerate Vedanta Ltd. on Wednesday, July 23, announced that the company has been declared the preferred bidder for the mining permit at Janthakal iron ore mine in Karnataka, as per a stock exchange filing.

The company participated in the tendering process announced on October 3, 2024 via a live e-auction for the mining licence. On July 22, Vedanta was informed about being the preferred bidder for the iron ore mine — which is at the G3 level of exploration with a total area of 71.16 hectares for the block.

The grant of a mining licence by the government of Karnataka is subject to a performance bank guarantee, completion of other terms and conditions of the tender document, and obtaining the requisite approvals from various government departments and agencies.

Last week (July 9), shares of the Anil Agarwal-owned mining company and its subsidiary Hindustan Zinc Ltd fell by as much as 7% after a short-seller, Viceroy Research, alleged material discrepancies in the group's financials.

Vedanta's interest expenses vastly exceed its reported note rates, and continues to increase despite paydowns and restructuring, according to the Viceroy note, which further stated that expenses across operating subsidiaries are systematically capitalised, artificially inflating profits and asset values. "This is a material misrepresentation," the note said.

Shares of Vedanta closed marginally higher at ₹455 on the NSE today (July 23).