Tuesday, 9 October 2012

Mining ban hits Sesa Goa hard, sales down 86%

The production of iron ore also suffered a drop of 65% in total

Shubhashish / Mumbai Oct 09, 2012
Business Standard
Sesa Goa, India’s largest private sector iron ore miner, sold only 0.2 million tonne iron ore in the second quarter ended September 30, 2012. This translates to a drop of 86% as sales in the same quarter last year were 1.6 million tonne.

Production and sale from its mines in Karnataka continue to be negligible. because of the mining ban imposed in the state. The Supreme Court has allowed category A and B mines to restart but it is still some time for Sesa Goa to see its Karnataka mines coming into operation. The company said, last month the Supreme Court allowed some mines in Karnataka to resume mining operations, in line with recommendations of the Central Empowered Committee (CEC), and has now commenced the process for other mines including our mine in Karnataka.

"The CEC has approved our Reclamation and Rehabilitation plan at a provisional production capacity of 2.29 mtpa and we expect to commence mining in Karnataka, subject to receiving the court’s approval.”

Sesa Goa managed to sell 0.01 million tonnes iron ore from Karnataka in Q2 FY2013 and 0.06 million tonnes in H1 FY2013 through court sponsored e-auctions of inventory.

The production of iron ore also suffered a drop of 65% in total. The company said, in Goa, production of iron ore was 0.4 million tonne in the second quarter as against 0.7 million tonne in the same period last year thereby registering a drop of 42%. Ore production in Karnataka was zero from 0.5 mt last year.

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