Sesa Goa has reported that its iron ore production fell 21 per cent to 5.49 million tonnes in the fourth quarter of this fiscal against 6.24 mt recorded in the same period last year. The company attributed the drop in output to the state-wide export ban in Karnataka since July last year and termination of the third party mining agreement in Orissa in November.

Production for the full year was marginally lower at 18.80 mt (21.08 mt). The Supreme Court recently issued a ruling that the Karnataka export ban should be lifted from April 20. The final hearing of the case is expected in May first week, the company said. Sales of iron ore were 6.65 mt (6.55 mt) in the quarter under review. Sales in the financial year were down at 18.14 mt against 18.39 mt sold during the prior year.

EXPANSION ON TRACK

The iron ore capacity expansion programme is on track for completion by FY'13-end. Expansion of the pig iron capacity to 625,000 tonnes per annum and the associated expansion of metallurgical coke capacity to 560,000 tpa is progressing well for commissioning by third quarter of this fiscal, the company said.

Part of the London-listed Vedanta Resources plc, Sesa is India's largest producer and exporter of iron ore in the private sector. Sesa has mining operations in Goa and Karnataka and operates a 280,000 tpa metallurgical coke plant and a 250,000 tpa pig iron plant in Goa.

The company's shares were down 0.84 per cent at Rs 313 on Friday.

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