Sesa Goa likely to miss production target due to mining ban
Vedanta group firm Sesa Goa is likely to miss the production target of about 15 million tonnes for the current fiscal due to mining ban in Goa, a senior company official said today.
October 30, 2012 / 14:25 IST
Vedanta group firm Sesa Goa is likely to miss the production target of about 15 million tonnes for the current fiscal due to mining ban in Goa, a senior company official said today. "Obviously not. We can not give you any number at this time," Sesa Goa's Managing Director P K Mukherjee said when asked whether the company will be able to achieve its guidance after the imposition of ban.
During the first half of the fiscal, the company has produced about 3.7 million tonnes (MT) iron ore. For 2012-13, it has given a production guidance of about 15 MT. However, the mining ban in Goa has affected Sesa Goa's performance in the last quarter. All its operations, except met coke and pig iron production, are closed.Without Rs 464.63 crore profit, for its 20 per cent holding in Cairn India, the Goa-based iron ore miner would have posted a consolidated net profit of Rs 57.61 crore in the quarter as many factors impacted its performance, largely due to the ban and other season factors. Its sales was also down to Rs 288.49 crore during the quarter vis-a-vis Rs 784.14 crore of the corresponding period."It depends which way Goa situation is moving. We can produce 1.5-2 MT iron ore every month as and when we get the permission to resume mining," Mukherjee told PTI, adding that "some positive news" may come in November on mining ban in Goa.The ban was first announced by the Goa government in September due to the findings of Justice M B Shah Commission on illegal mining. Early this month, Supreme Court extended the ban for a one month till a court-appointed Central Empowered Committee submits its report. Talking about Karanataka, Mukherjee said the company is thinking of filing an application in the Supreme Court for a temporary approval to resume mining for 3 months and during that period, it will be seeking all other statutory and regulatory clearances."In consultations with our legal team, we are thinking to file an application in the Supreme Court seeking temporary permission of resuming mining in the state (Karnataka) for 3 months. In that period (3 months), we will be seeking all other statutory clearances," Mukherjee said. He added that the company's mining lease for Chitradurga has come to an end yesterday (October 28) and Sesa Goa is looking for its renewal."That's why we are thinking of moving an application for permission to temporary resume mining," he said. Sesa Goa's mine is in category-B of apex court appointed Central Empowered Committee's (CEC) categorisation. The company's reclamation and rehabilitation plan at a provisional production capacity of 2.29 mtpa has already been approved by the CEC. The company can begin production only after the apex court approves mining in category-B mines in Karanataka.The company stock was trading at Rs 170.20 apiece on the BSE, up 0.44 per cent, in the afternoon trade. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
