Companies

Sesa Goa to start exploration in Liberia mines shortly

PTI New Delhi | Updated on March 12, 2018

Sesa Goa will begin exploration later this week at its Liberian iron ore project that is estimated to hold reserves of over 1 billion tonnes, a top company official said.

Last year, the company had acquired 51 per cent stake in Western Clusters Ltd, which is developing the project for about $90 million (Rs 411 crore). This was the first overseas acquisition of the Vedanta group miner.

“We have got the licences for all the three blocks. First rig arrived last week and exploration will begin later this week,” said Mr P K Mukherjee, Managing Director, Sesa Goa.

He added the company has completed the aeromagnetic survey of the Liberian iron ore reserves and Sesa Goa’s capital expenditure plan for the project will be known in next 2—3 months.

“We are bullish on it... Exploration is about to begin and we will get the idea about the reserves in 2-3 months,” Mr Mukherjee said.

Excluding Liberia, the company has kept a capex of Rs 600 crore for its existing and expansion activities in the current fiscal.

Besides, the iron ore miner has kept a production and sales guidance of 15 million tonnes (MT) from Goa in the current fiscal.

Last year, the company added 68 million tonnes of reserves and resource, thereby taking its total mining reserve base to 374 MT.

“This was higher ever accretion for us and at our production capacity of 21 MT, this resource base can be sustained for 17—18 years,” he added.

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Published on April 26, 2012
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