Mumbai | March 12, 2015: Sesa Sterlite, part of Vedanta Group, has resumed iron ore mining in Karnataka and expects to produce 700,000 tonnes this month.

Tom Albanese, CEO, Vedanta Resources, told BusinessLine that the State Government has renewed the mining lease, and the company started mining in Karnataka from last week after receiving statutory clearances.

"The annual production capacity at the mines has been capped at 2.3 million tonnes. We would be able to reach the annual target easily, if the market conditions are favourable," he said.

The company's iron ore mine is located in the southern part of Karnataka in Chitradurga district which used to produce 6 million tonnes a year before the mining ban was imposed.

Mining activities in the country came to a standstill after the Supreme Court imposed a ban due to illegal mining on the basis of the Shah Commission report.

In April 2013, the apex court lifted the ban on iron ore mines in Bellary, Chitradurga and Tumkur districts of Karnataka.

(Source: http://www.thehindubusinessline.com/)