Sesa Goa production down 27 percent to 13.80 MT

New Delhi: Vedanta group firm Sesa Goa's iron ore production declined 27 percent to 13.80 million tonnes (MT) in 2011-12 due to host of reasons including ban on mining in Karnataka.

The company, which is to become the holding company of Vedanta's Indian operations post-merger of another group firm Sterlite Industries with it, had reported 18.8 MT of ore production in FY'11.[caption id="attachment_271589" align="alignleft" width="380" caption="Dipping production. Reuters"][/caption]

"Volumes were lower primarily due to the Karnataka mining ban and the discontinuation of Odisha operations," the company said in a statement.

According to the statement, the company's ore productions were down in both the states, Goa and Karnataka, where it has operating mines. In Goa, its production declined 12 per cent to 12.7 MT, while in Karnataka, the company managed to produce only 1 MT of iron ore in FY'12.

In 2010-11, the Vedanta group firm had discontinued its operations in Odisha.

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Besides, Sesa Goa's annual sales of the ore in the last financial year was also down by 11.60 per cent at 16 MT vis-a-vis 18.1 MT of 2010-11, it said.

In the January-March quarter, company's sales were down by 21.21 percent to 5.2 MT, while production declined by 11 percent at 4.9 MT.

According to the company, sales in last quarter were down "due to the continued mining ban in Karnataka, and transport and logistics bottlenecks in Goa".

It added, "We are expanding existing roads and establishing road corridors at Goa to reduce these bottlenecks."

On its Karnataka operations, the company said it sold 0.2 MT and 0.9 MT during last quarter and second half of last fiscal respectively, through the apex court directed e-auctions of inventory.

In February, Vedanta group had announced restructuring of its Indian operations, as per which a new entity Sesa Sterlite is to be formed by merging Sterlite Industries into Sesa Goa.

The merger is expected to be completed by the year end.

Shares of the company were being traded at Rs 183.20 apiece on the BSE at 1425 hours, down 1.95 percent from the previous close.

PTI