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Sesa Goa Q2 iron ore sales down 15%

10 Oct 2011 Evaluate

Vedanta Group firm Sesa Goa reported a 14.84% year-on-year decline in sales of iron ore to 1.55 million tonne during the quarter ended September 30, 2011. The company had reported sales of 1.82 million tonnes during the corresponding quarter last fiscal. However, it managed to achieve higher sales realisation from Karnataka during the quarter, at 0.71 million tonne, vis-a-vis 0.45 million tonnes of iron ore sales in Q2 of FY11. Sales were benefited by higher volumes in Karnataka prior to the imposition of a mining ban. Currently, the company does not produce any iron ore from Karnataka, following a ban imposed by the apex court in August on mining in the state. During the quarter, Sesa Goa's sales from Goa went down by 9.78% to 0.83 million tonne from 0.92 million tonne last year. In addition, the company's total production of iron ore went down by over 61% during the July-September quarter to 1.12 million tonne, largely due to the apex court ban on mining in Karnataka. It had reported total iron ore production of 2.88 million tonne in Q2 last fiscal. Moreover, the company had completed a deal for acquiring a 51% stake in three iron ore assets in Liberia.

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