Sesa Goa’s Q2 iron ore sales down 86% at 0.2 million tonne

Sesa Goa has reported unaudited consolidated production release for the second quarter (Q2) and half year ended (H1) September 30, 2012.

The company has registered 86% year-on-year decline in sales of iron ore to 0.2 million tonne during the quarter ended September 30, 2012 as against the sales of 1.6 million tonnes during the corresponding quarter last fiscal.  For the half year ended (H1) September 30, 2012, sales were 3.1 million tonnes as compared with 5.8 million tonnes during the corresponding prior year.

The company’s iron ore operations were affected by the mining ban in Karnataka, a temporary restriction on iron ore extraction in Goa, and transportation restrictions in South Goa during the monsoons. 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 the company is expected to commence mining in Karnataka, pursuant to the approval of Reclamation and Rehabilitation plan at a provisional production capacity of 2.29 mtpa by CEC.

Sesa Goa, which is a part of Vedanta Resources plc, the London-listed FTSE 100 diversified metals and mining major, is India’s largest producer and exporter of iron ore in the private sector with operations in the states of Goa and  Karnataka in India.  The company also manufactures pig iron and metallurgical coke, with a 0.56 mtpa metallurgical coke plant and a 0.625 mtpa pig iron plant in Goa.