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Sesa Goa to restart iron ore mining from Karnataka

17 May 2013 Evaluate

Sesa Goa is likely to restart iron ore mining from Karnataka in June, after the country’s top court lifted a 21-month ban imposed for environmental violations. After the restart, the entity aims a strong demand for the ore within the state. Last month, the Supreme Court had allowed Vedanta’s iron ore unit Sesa Goa and eight other companies to restart operations in Karnataka. In July 2010, Karnataka barred iron-ore exports to increase local supplies of the steelmaking ingredient.

The lease for the mine had expired in October last year and with that the forest clearance had also ended. But, the company can begin mining on deemed basis till the renewal of the lease, it requires forest clearance to do the same.

The company has reported net loss after taxes of Rs 174.93 crore in Q4FY13 as compared to net profit of Rs 648.21 crore in the same quarter previous year. The total income from operation of the company plunged by 85.75% to Rs 290.58 crore as compared to Rs 2039.76 crore in corresponding quarter last year.

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