Vedanta may see Rs 1,800 cr impairment due to mining halt

KOLKATA: Vedanta has said it is likely to face an impairment of Rs 1,500 crore to Rs 1,800 crore net of taxes due to a halt in mining activity in Goa following a February 7 directive of the Supreme Court.

“In light of the Supreme Court judgement dated February 07, 2018 wherein the Court has directed that effective March 16, 2018 all mining operations in the state of Goa are to be stopped, the company wishes to inform its investors that there could be a likely impairment of Rs 1,500 crore to Rs 1,800 crore net of taxes (Rs 2,100 crore to Rs 2,400 crore gross of taxes) on this account, Vedanta said in a notification to the BSE.

“This is mainly related to mining reserve and would be reflected in the results for FY 2017-18. Impairment is non-cash accounting item. Further, the closure of Group’s iron ore business in Goa would not have any material impact on the Group’s profitability,” the statement added.


The company added it reviews the carrying value of its assets at each reporting period end considering market developments such as long term commodity price assumptions, regulatory changes and other developments.