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Ban affects Sesa Goa, production falls 21% in Q4

11 Apr 2011 Evaluate

Sesa Goa reported that its iron ore production fell 21 per cent to 5.49 million tonnes in the fourth quarter of this fiscal against 6.24 mt recorded in the same period last year. The company attributed the drop in output to the state-wide export ban in Karnataka since July last year and termination of the third party mining agreement in Orissa in November.

Production for the full year was marginally lower at 18.80 mt (21.08 mt). The Supreme Court recently issued a ruling that the Karnataka export ban should be lifted from April 20 Sales of iron ore were 6.65 mt (6.55 mt) in the quarter under review. Sales in the financial year were down at 18.14 mt against 18.39 mt sold during the prior year.

The iron ore capacity expansion programme is on track for completion by FY'13-end. Expansion of the pig iron capacity to 625,000 tonnes per annum and the associated expansion of metallurgical coke capacity to 560,000 tpa is progressing well for commissioning by third quarter of this fiscal.

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