Sesa Goa hopeful of re-starting mining in Karnataka soon

Moneycontrol Bureau

After a year-long iron ore mining ban in Karnataka, Sesa Goa is hopeful of re-starting production in the state soon. The firm has already  submitted a detailed plan to the Indian Bureau of Mines (IBM) for a final approval so that it can resume operations there, said P.N Mukherjee, Sesa Goa's managing director in an earnings call today.

"Once approved by the IBM, Sesa will produce around 2.5 million tonnes per annum," said  Mukherjee while replying to analyst queries. Sesa is one of the eight mining companies which has to discontinue mining operations after in July lat year, the SC had imposed an interim ban on mining in the state, citing environmental violations and illegal mining, which created scarcity in the supply of raw material to the iron and steel industry, both within and outside the state.

Sesa expects to increase its iron-ore production from Goa, the western Indian state where its biggest mines are located and are currently hit by road congestion in the state's mining areas and an ongoing transporters' strike. Nevertheless, he also expects the strike to end soon.

Mukherjee said that work is in full swing for the development and operation of three Liberia iron ore assets it acquired last year. It may be recalled that Sesa has committed $2.6 billion for this project