Vedanta Limited (VEDL), a leading diversified natural resources company, has marked a significant milestone in its expansion efforts within the iron ore sector. The company has been declared the preferred bidder for the Janthakal Iron Ore Mine in Karnataka, following a competitive e-auction process conducted by the Department of Mines & Geology, Government of Karnataka.

Auction Details

The e-auction, which stemmed from a Notice Inviting Tender dated October 3, 2024, saw Vedanta emerge victorious. The company received official confirmation of its preferred bidder status on July 22, 2025, at 3:17 pm IST, as disclosed in a regulatory filing to the stock exchanges.

Mine Specifications

The Janthakal Iron Ore Mine presents a substantial opportunity for Vedanta:

Next Steps

While this declaration marks a crucial step forward, Vedanta must complete several key processes before securing the mining license:

1. Payment of Performance Bank Guarantee
2. Fulfillment of terms and conditions outlined in the Tender Document
3. Obtaining necessary approvals, permissions, and clearances from various government departments and agencies
4. Execution of required agreements and deeds

Implications for Vedanta

This development aligns with Vedanta's strategy to strengthen its position in the iron ore market. The acquisition of the Janthakal mine, once finalized, could potentially enhance the company's resource base and production capabilities in the iron ore segment.

Market Impact

Investors and industry observers will likely watch closely how this new asset impacts Vedanta's operations and financial performance in the coming quarters, particularly in its iron ore division.

Vedanta Limited continues to demonstrate its commitment to growth and expansion in the natural resources sector. The company's success in securing preferred bidder status for the Janthakal Iron Ore Mine underscores its competitive edge and strategic focus on enhancing its mineral portfolio in India.

In a significant vote of confidence for Vedanta Limited , two leading credit rating agencies, Crisil and ICRA, have reaffirmed their ratings for the mining conglomerate. This development comes in the wake of allegations made by US short-seller Viceroy Research, which had claimed Vedanta was 'financially unsustainable'.

Rating Reaffirmations

Crisil has maintained its 'CRISIL AA / Watch Developing / CRISIL A1+' ratings for Vedanta Limited. The agency also reaffirmed its 'AAA' rating for Hindustan Zinc, a subsidiary of Vedanta. Similarly, ICRA has reaffirmed its 'ICRA AA / Watch Developing / ICRA A1+' ratings for Vedanta.

Independent Evaluation

Both rating agencies conducted independent evaluations following the short-seller report. Crisil noted that it found no adverse reaction from lenders or investors. The agency stated, "CRISIL has its credit ratings outstanding on multiple entities of the Vedanta group, and all have been reaffirmed."

Financial Performance

ICRA highlighted the Group's commitment to debt reduction, noting that Vedanta's leverage ratio (Net Debt/OPBDITA), including Vedanta Resources Limited's debt, improved to 2.5x in FY 2025 from 3.2x in FY 2024. The agency also emphasized Vedanta's healthy profitability, particularly in its aluminium and zinc operations.

Debt Refinancing

ICRA pointed out that recent refinancing at Vedanta Resources Limited (VRL) has effectively smoothened the debt maturity profile and is expected to reduce finance costs from FY 2026 onwards.

Short-Seller Allegations

The reaffirmations come after US short-seller Viceroy Research claimed Vedanta was 'financially unsustainable'. Vedanta had dismissed these allegations as 'selective misinformation and baseless allegations.'

Management Response

In response to the short-seller report, Vedanta's management stated that the allegations were baseless and that the transactions in question had appropriate commercial substance. The company affirmed that these transactions were approved and in compliance with contractual obligations and applicable laws and regulations.

Legal Opinion

To further address the allegations, Vedanta Limited obtained an independent legal opinion from Hon'ble Mr. D.Y. Chandrachud, Former Chief Justice of India. The company has submitted this legal opinion to the stock exchanges and made it available on its website.

The reaffirmation of credit ratings by Crisil and ICRA underscores the financial community's continued confidence in Vedanta's business stability and performance, despite recent challenges posed by short-seller allegations.