Companies

Sesa Goa plans Rs 600-cr capex for this fiscal

Suresh P. Iyengar Mumbai | Updated on March 12, 2018

Raises iron ore production target to 15 million tonnes

Sesa Goa, a Vedanta Group company, plans to invest Rs 600 crore this fiscal in ongoing expansion projects and to develop infrastructure facility at its mines in Goa.

The company is at an advanced stage of increasing pig iron production to 625,000 tonnes per annum (tpa) from 250,000 tpa and metallurgical coke to 560,000 tpa from 280,000 tpa.

Mr P. K. Mukherjee, Managing Director, said the company will invest Rs 150-200 crore in Goa for laying separate roads for transporting iron-ore from mines to the nearest sea port.

This will ease the burden on public infrastructure facility, he added. The Goa Government had imposed timing restrictions on transportation of iron ore.

Truckers' demand

Transport of iron ore from one the company's mines was affected by the demand from truckers for higher rates. The company has been incurring higher transportation expenses. The sudden demand from truckers' is not acceptable, said Mr Mukherjee.

Sesa Goa has set an iron ore production target of 15 million tonnes (mt) this fiscal against 13.8 mt produced in FY'12. It has an inventory of 700,000 tonnes in Goa and 100,000 tonnes in Karnataka. The company has submitted a reclamation and resettlement plan for its mine at Chitradurga district in Karnataka.

The report was submitted to the Supreme Court appointed panel which is looking into illegal mining in the State.

Sesa expects mining in Karnataka to resume in the next two to three months after the apex court takes a final decision.

Increase in reserves

Sesa has added 68 mt of reserves and resources (R&R), primarily in Goa. With this addition, the company's total R&R has gone up to 374 mt in FY'12 against 306 mt in FY'11.

On its Liberian mining venture, Mr Mukherjee said an aero-magnetic survey conducted at the mining site has revealed a reserve of one billion tonnes.

“We are undertaking a study of the region at the moment. Most details on the investment plans will be finalised in next couple of months,” Mr Mukherjee said.

> suresh@thehindu.co.in

Published on April 25, 2012

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