SC seeks response from Goa on Sesa's export plea

The Supreme Court has sought response from the state government on a plea filed by Sesa Goa seeking permission to sell its iron ore stock lying at various sites in Goa. The case will now come up for hearing in July

The firm has in its appeal stated that the iron ore which it is referring to was mined even before the SC banned mining in the state around two years ago. The Vedanta Group company has also expressed concern about the iron ore likely to get washed away in the upcoming monsoon season, thereby impacting the environment.

Sesa has a 7 metric tonne (MT) capacity in South Goa and over 3 MT plant in North Goa. In addition, it derives its ore production from Sesa Resources mines and several satellite mines in the state. The ban is not only affecting around 25 percent of Goa’s domestic product but is also impacted  the company by Rs 80 crore on fixed cost each quarter.

Due to iron ore shortage, the company’s pig iron is not making profit as it has to source it at a higher price.Must Read: Angel Broking neutral on Sesa Goa

Meanwhile, the firm along with other miners is severely impacted due to the mining ban imposed around two years ago. It could not produce iron ore in the December quarter due to the ongoing mining ban in Karnataka, where the SC has recently lifted ban) and even Goa where judgment is awaited. The company also had to defer few senior staff salaries in January this year due to strain on finances, suggest reports.